Martin Glenn, the chief judge of foreign bankruptcy, undertook the supervision of Chapter 11 case of Celsius, and Shoba Pillay, the former prosecutor, was the examiner to investigate the encrypted loan platform. The examiner is expected to publish a report on the customer's accusation that Celsius carried out the Ponzi scheme.

℃ Operation of Ponzi scheme?

It is reported that the bankruptcy examiner found that the business model of sales promotion of Celsius Network to customers is completely different from the business model of the enterprise. It mentioned that from the beginning, Alex Mashinsky, the founder of Celsius, also failed to honor their commitment to the original CEL token. However, it also involves other business activities.

This report is expected to bring new work pressure to Alex Mashinsky, who has already been charged with fraud. According to the report, from May 28, 2021 to the bankruptcy filing, the vacancy of stable currency in Celsius is about US $1 billion.

However, the bankrupt crypto credit company did not respond to the allegations. In addition, the company headquartered in Ohio, USA, made up for Chapter 11 judicial proceedings in July 2023. Celsius froze customers' withdrawals from the website before registering for bankruptcy. The results showed that the company listed a loss of $1.19 billion on its balance sheet.

During the prevention and control of the COVID-19, this desperate crypto credit company prospered and made headlines today. Borrowers have brought low interest rates, and customers can easily get loans.