"Pillay is the very thorough independent examiner appointed by the U.S. bankruptcy court in New York to oversee the investigation of Celsius' Chapter 11 and find out where the hell several billion in capital went and ran off to. As a reminder, Celsius, which venture funds and pensions once pegged to be worth $3.5 billion, spiraled into insolvency in the wake of its exposure to the stablecoin Terra, the hedge fund Three Arrows Capital, and later, Sam Bankman-Fried's now infamous crypto exchange FTX."
"Pillay's expansive investigation offers us the first fully comprehensive look at what exactly happened. And it serves as a warning to investors to take a second look at founders who use words like "transparent" or "safe" or "financial freedom" to lure in new customers-particularly when they may be running an alleged sham of an operation that their own employees would describe as "very ponzi like.""
"Pillay's extensive investigation spanned 500 gigabytes of data and records, including 231,000 documents, emails, financial and coin reports, Slack messages, and dozens of interviews. All of this laid out details regarding how Celsius allegedly never had a robust risk management policy in place (and didn't have a written policy until early 2021), had"
Celsius Network collapsed after exposure to Terra, Three Arrows Capital, and FTX. A bankruptcy court appointed independent examiner Shoba Pillay to investigate Celsius’ Chapter 11 and determine where billions in capital went. The investigation produced a comprehensive report based on 500 gigabytes of data, including 231,000 documents, emails, financial and coin reports, Slack messages, and dozens of interviews. Findings allege Celsius lacked robust risk management, including no written policy until early 2021. The report also serves as a warning to investors to scrutinize founders using terms like “transparent,” “safe,” and “financial freedom,” especially when employees describe operations as “very ponzi like.”
#crypto-lending #bankruptcy-investigation #risk-management #investor-due-diligence #fraud-allegations
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