Could Celsius's troubles lead to a broader market contagion from cryptocurrencies?

Celsius’ troubles have reignited worries over the risk of a broader market contagion from cryptocurrencies. Tether, the world’s biggest stablecoin, hovered below its $1 peg Monday on several major exchanges as investors fled the token. Celsius borrowed $500 million in tether tokens, posting bitcoin as collateral.

Is Celsius Network's Alex Mashinsky a bank or a lender?

Celsius Network CEO Alex Mashinsky built his cryptocurrency lender into a giant on a pitch that it was less risky than a bank with better returns for customers. But investor documents show the lender carried far more risk than a traditional bank.

Is Celsius a bank or a crypto lender?

Founded in 2017 by Mr. Mashinsky, Celsius surged amid the crypto boom to become one of the biggest crypto lenders, with more than $12 billion in deposits. Customers, wooed by high interest rates, flooded in, while venture capitalists showered it with money. Contrasts with banks were at the center of Mr. Mashinsky's public persona. Mr.

Are crypto hedge funds entwined with Celsius?

Meanwhile, there could also be some crypto hedge funds “that are now entwined with all this because they lend their assets to Celsius or deposit of assets there,” according to Siemer.