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Trial accuses cryptocurrency lender Celsius of fraud



(Reuters) – A former investment manager at Celsius Network sued the cryptocurrency lender on Thursday, saying it used customer deposits to rig the price of its own cryptocurrency and failed to hedge the risk properly, causing it to freeze customer assets.

The complaint alleges that Celsius ran a Ponzi scheme to benefit itself through “gross mismanagement of customer deposits” and tricked plaintiff KeyFi Inc., run by former boss Jason Stone, into providing millions of dollars worth of services and refusing to pay for them. them.

Celsius had no immediate comment on the lawsuit, which seeks unspecified compensation and damages, and was filed in New York State Court in Manhattan.

Mr. Stone̵

7;s allegations follow Celsius’ decision on June 12 to freeze withdrawals and transfers for its 1.7 million customers due to “extreme” market conditions.

The Hoboken, New Jersey-based company later hired advisers for a possible debt restructuring, which reportedly could include a bankruptcy petition.


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