Main navigation

Celsius Accused Its Money Manager of Theft, CEL Loses 16%

Wed, 08/24/2022 - 11:52
article image
Arman Shirinyan
Company believes Keyfi converted assets to NFTs and used Tornado Cash to cover its tracks
Celsius Accused Its Money Manager of Theft, CEL Loses 16%
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

As the Bloomberg article based on the allegation of Celsius suggests, a former money manager for the company deceived the company about his investing abilities and lost or even stole a large part of users' assets.

The company that filed for bankruptcy a month ago, following the freezing of users' assets, alleged that Jason Stone lied about his investing abilities and competence required for managing millions of users' funds. The company's representatives also believe that Stone stole a part of the managed funds‌.

Related
Ripple Expands into Second-Largest Arab Economy via Partner, Tranglo

Celsius's attorneys were staggered with the defendant's liability to the company. The company managed by Stone–Keyfi converted Celsius assets into NFTs and stole them in order to cover its tracks with crypto mixer Tornado Cash, which has recently been banned, with all addresses tied to it blacklisted by major cryptocurrency and even DeFi projects.

In the last month, Stone sued Celsius, accusing it of fraud and limiting his pay, depriving him of millions of dollars of income. Stone's attorney stated that the company is looking for someone to blame for their own incompetence that led to the catastrophe.

Related
Ethereum PoW Listing Requires Risk Assessment Ahead of Merge, Japan’s Bitbank Says

Following the accusations of the fund's manager, Celsius token lost over 16% of its value in the last 24 hours amid a massive 70% correction. Despite the entire situation around the company, the token managed to reclaim 260% of its value at the beginning of this month.

With the active case going on right now, the token's price performance on the market remains unpredictable, considering the number of new findings appearing in the space almost every day.

At press time, CEL is trading at $1.4 and losing around 16% of its value in the last 24 hours.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.