Is Celsius Network a fraud?

The Celsius Network was one of the world's richest and most prominent crypto lenders. A New York state lawsuit suggests it was a fraud all along. Alex Mashinsky, Celsius, on Centre Stage during day three of Web Summit 2021 at the Altice Arena in Lisbon, Portugal.

Why did a former investment manager Sue Celsius Network?

REUTERS/Dado Ruvic/Illustration NEW YORK, July 7 (Reuters) - A former investment manager at Celsius Network sued the crypto lender on Thursday, saying it used customer deposits to rig the price of its own crypto token and failed to properly hedge risk, causing it to freeze customer assets.

Why did Celsius file for bankruptcy?

Founded in 2017, Celsius filed for Chapter 11 bankruptcy protection in July 2022 after customers rushed to withdraw deposits as crypto prices fell. Many have been unable to access their funds. Crypto lenders such as Celsius grew rapidly as crypto prices surged during the COVID-19 pandemic.

What happened to Celsius?

Before declaring bankruptcy in July 2022, Celsius was flying about as high as any crypto lender ever got. The firm had raised $1 billion in venture capital, had made serious acquisitions, and featured a magnetic CEO who frequently preached the crypto gospel on social media.