Did Celsius networks defraud investors?

Link Copied! The New York attorney general filed a civil lawsuit Thursday against the co-founder of now-bankrupt cryptocurrency lender Celsius Networks for allegedly defrauding hundreds of thousands of investors who deposited billions of dollars into the platform.

Is Celsius a scam or a new-school crypto scheme?

"Whether it's old-school fraud or some new-school crypto scheme, it doesn't matter one bit. It's all fraud to us," U.S. Attorney Damian Williams said at a press conference detailing the charges. Founded in 2017, Celsius filed for Chapter 11 bankruptcy protection in July 2022 after customers rushed to withdraw deposits as crypto prices fell.

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's going on with Celsius Network?

The Justice Department entered into a non-prosecution agreement with Celsius, in which the company accepted responsibility for its role in the alleged schemes and pledged to continue cooperating with investigators, Williams said, Thursday's lawsuits add to a series of challenges for Celsius Network and its founder.