Did crypto lender Celsius inflated the price of its own cryptocurrency?

Crypto lender Celsius artificially inflated the price of its own digital coin, failed to hedge risk and engaged in activities that amounted to fraud, a lawsuit alleges. Celsius on Thursday was sued by former investment manager Jason Stone, as pressure continues to mount on the firm amid a crash in cryptocurrency prices.

Why did Celsius go bankrupt?

Celsius was among the first in a series of bankruptcies in the cryptocurrency sector last year as token prices cratered amid rising interest rates and stubbornly high inflation. It filed for bankruptcy shortly after Singapore-based crypto hedge fund Three Arrows Capital and rival crypto lender Voyager Digital did likewise.

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 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.