Promise

Celsius

Future

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Billion

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 <h2 id="b-celsius-network-from-promise-to-peril-b"><b>Celsius Network: From Promise to Peril</b></h2> 
 <p><span style="font-weight: 400;">Founded with the vision of being a modern-day bank for crypto assets, Celsius Network quickly rose to fame in the cryptocurrency world. With promises of secure deposits and high-interest earnings, the platform attracted billions in investments from unsuspecting investors. </span></p>  
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 <blockquote> 
  <p><span style="font-weight: 400;">Per a Financial Times </span><span style="font-weight: 400;">report</span><span style="font-weight: 400;">, the indictment against Mashinsky claims that the cryptocurrency platform was operating “as a risky investment fund” and was less profitable than it had led investors to believe.</span></p> 
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 <p><span style="font-weight: 400;">In a series of tweets, Dixon pointed out that those who believe Mashinsky should have stayed in control of Celsius Network are likely unaware of the settlement details with the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Department of Justice (DOJ). The company settled to ensure that <a rel="noopener noreferrer nofollow" title="Alex Mashinsky" href="https://thebittimes.com/tag/alex-mashinsky.html">Alex Mashinsky</a>, other insiders, and the company’s new version, Celsius 2.0, would not have access to investors’ funds again.</span></p> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
  <p lang="en" dir="ltr">Anybody that believes <a rel="noopener noreferrer nofollow" title="Alex Mashinsky" href="https://thebittimes.com/tag/alex-mashinsky.html">Alex Mashinsky</a> should have stayed clearly has not read the #FTC #SEC #CFTC #DOJ settlement.</p>  
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  <p>The only reason 🇺🇸 government did not get $4.7bn ahead of us is because #Celsius settled to ensure Alex, other insiders &amp; #Celsius 2.0 never touch our funds again. https://t.co/1DLRk7UFTw pic.twitter.com/18WMVUrG9F</p> 
  <p>— Simon Dixon (@SimonDixonTwitt) August 16, 2023</p> 
 </blockquote> 
 <p></p> 
 <h2 id="b-risky-investments-and-controversy-b"><b>Risky Investments and Controversy</b></h2> 
 <p><span style="font-weight: 400;">Another of Dixon’s tweets highlighted an incident that brought controversy to Mashinsky and Celsius. In 2019, Mashinsky allegedly shorted Bitcoin on behalf of Celsius Network, using investor funds without proper disclosure. When a senior executive at Celsius unwound the positions, the company suffered a $15 million loss. As a result, Celsius had to create a “Recovery Committee,” contemplating liquidating or selling the company to cover the loss. The company’s financial situation stabilised only after a $20 million capital raise in August 2020.</span></p> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
  <p lang="en" dir="ltr">So this is what <a rel="noopener noreferrer nofollow" title="Alex Mashinsky" href="https://thebittimes.com/tag/alex-mashinsky.html">Alex Mashinsky</a> ‘forgot’ to disclose to us before the ‘Series A’ equity funding round that his customers &amp; myself invested into. </p> 
  <p>He’d call it #Puffery </p> 
  <p>Thanks for disclosing it finally #FTC 😡 pic.twitter.com/X9uBerMIX3</p> 
  <p>— Simon Dixon (@SimonDixonTwitt) August 15, 2023</p> 
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 <p><span style="font-weight: 400;">Celsius Network has also been accused of using customer funds to manipulate the market for a cryptocurrency token called CEL, enabling the company to sell its token holdings at inflated prices.</span></p> 
 <h2 id="b-celsius-future-in-jeopardy-b"><b>Celsius’ Future in Jeopardy</b></h2> 
 <p><span style="font-weight: 400;">Now run by a team of restructuring professionals led by former JPMorgan Chase banker Chris Ferraro, Celsius Network has accepted responsibility for its part in the alleged scheme, according to a </span><span style="font-weight: 400;">non-prosecution agreement</span><span style="font-weight: 400;"> with the Department of Justice unveiled in July.</span></p> 
 <p><span style="font-weight: 400;">As Mashinsky’s arrest and the charges against him bring further scrutiny to the cryptocurrency world, investors are reminded of the high risks involved in this emerging and unregulated industry. The Celsius Network case highlights the need for greater transparency, regulatory oversight, and ethical practices in cryptocurrency to protect investors from fraudulent schemes and ensure the industry’s long-term sustainability.</span></p> 
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Author Makes Shocking Revelations In $4.7 Billion Celsius Network Settlement

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