00:00Welcome back to Decentralized News. So just a quick update. There's been some news out saying that the former asset manager for Celsius has actually filed a lawsuit alleging that the company was a Ponzi scheme.
00:14So Jason Stone, who's a founder of the Kefi company and who also formerly managed the assets for Celsius, filed a complaint against Celsius Network in a New York court alleging that the company was operating a Ponzi scheme and owes them a significant sum of money.
00:33Stone also alleged that despite claiming that Celsius's trading teams would probably sort of hedge against any impermanent loss or loss due to token fluctuation incurred by Kefi, they were doing nothing of the sort.
00:52And upon learning this in March 2021, apparently they terminated their relationship with Celsius and Stone alleges further that Celsius owes Kefi a significant sum of money and which Celsius has not acknowledged.
01:11Instead, Stone also claims Celsius has accused them of theft and the legal complaint reads, prior to plaintiff coming on board, defendants have had no unified, organized or overarching investment strategy other than lending out the consumer deposits that they received.
01:32Instead, they were desperately seeking a potential investment that could earn more than they owed to their depositors, which would be sort of something you would find typical with a general Ponzi scheme.
01:50So otherwise, they would have had to use additional deposits to pay the interest owed on prior deposits, which is a classic Ponzi scheme, according to this gentleman from Kefi and the recent revelation that Celsius does not have the assets on hand to meet its withdrawal obligations shows that the defendants were in fact operating a Ponzi scheme.
02:15So these are the alleged sort of allegations that Jason Stone is putting forward against Celsius network.
02:28So this is just another key development in what Celsius has been entangled in over the last few months.
02:35But of course, you know, there's also some news that Celsius itself has actually paid off some of its creditors.
02:44And according to another article, it was said that they fully paid off their make alone and which is a significant sum of about $440 million worth of collateral in the form of wrapped Bitcoin.
03:00So this was something people were seeing as, you know, signaling an end inside for Celsius network customers who are sort of at the moment facing these withdrawal freezes.
03:15And on-chain data is showing that the embattled crypto lender has now fully repaid a loan to make a protocol.
03:23And this means that Celsius can now reclaim over $440 million worth of collateral in the form of a wrapped Bitcoin and hundreds of millions of dollars have also been repaid to make over the last few days.
03:38And there hasn't been much in the way of an update from Celsius network directly and the executives are warning it will take some time to complete the restructuring.
03:49But the activity that people are seeing on-chain confirms that the work has been taking place.
03:55So, again, you know, some people are saying that this could be a good thing in terms of hopefully moving towards some of the customers being able to withdraw their funds from the platform since the funds have been sort of withheld.
04:13And let me know what your thoughts are.
04:16Don't forget to check out other links in the description to my books, Tokenized Trillions, Blockchain Applied, and also like, share, subscribe, turn on the notification bell and join our Telegram and our Discord server.
04:27I'll see you guys in the next one.
04:29I just wanted to give you that update as far as all the losses that are happening with regards to Celsius and what they have going on and everything else in terms of what they're doing to hopefully move towards.
04:43And getting the people that they owe money back their funds.
04:48Peace, love, see you again in the next video, guys.
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