Findings from an independent examiner’s report show deep-rooted issues at the now bankrupt crypto lender.
(Bloomberg) — Listen to Bloomberg Crypto on the iHeartRadio App, Apple Podcasts or Spotify.
The story of crypto lender Celsius Network’s bankruptcy officially began last summer, when it filed for Chapter 11 and cited a severe liquidity crisis. At the time, FTX and its CEO were still heralded as promising figures in the industry, even as companies and users were struggling to get by in the midst of a grueling crypto winter.
But now, we’re getting a glimpse of just how bad things were at Celsius, almost from its inception.
The recent release of a final independent examiner’s report contains a searing account of how the lender may have concealed ineffective risk management and misled customers.
In the report, Celsius appears to have failed to properly track assets and liabilities. They also failed to disclose crucial financial information about its native token, CEL, and falsely portrayed the financial state of the company as robust and healthy.
It’s a whopping 689-page read. So, what else did it say about Celsius?
Bloomberg’s Olga Kharif has been reporting on this and she joins this episode.
Subscribe to the Bloomberg Crypto Newsletter at https://bloom.bg/cryptonewsletter
This podcast is produced by the Bloomberg Crypto Podcast team: Supervising producer: Vicki Vergolina, Senior Producer: Janet Babin, Producers: Sharon Beriro and Muhammad Farouk, Associate Producers: Mo Andam and Ty Butler. Sound Design/Engineer: Desta Wondirad.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.