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.

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.

Is Celsius a safe & secure cryptocurrency?

Mashinsky's false portrayal of Celsius as a safe and secure institution caused its customer base to grow exponentially through a large number of retail investors, the indictment says. By the fall of 2021, Celsius had become one of the largest crypto platforms in the world, purportedly holding approximately $25 billion in assets, it says.

Is Celsius a bank?

Celsius was not immediately available for comment on the lawsuit when contacted by CNBC. Celsius acts like a bank in that it offers customers yield, sometimes as high as nearly 19%, if they deposit their crypto with the company. The firm then lends that crypto out to others willing to pay a high interest rate to borrow.