Celsius, a crypto lending platform, has outsourced approximately $ 530 million worth of corporate funds to asset managers engaged in high-risk leveraged crypto trading strategies, compared to the value of Celsius’ first crypto assets. The capital caused an apparent loss of $ 350 million in client funds. It was reportedly returned.
According to on-chain analysis by blockchain analysis firm Arkham Intelligence, the asset management company has been identified as Battlestar Capital / KeyFi, an investment company led by co-founder and CEO Jason Stone, and operates under the pseudonym the famous “0xB1”. ..
After the acquisition of KeFi by the Celsius Network in October 2020, Stone won the title of Head of DeFi Steak at Celsius.
The report further states that Celsius has spent more than $ 350 million to buy its own crypto token CEL on the exchange, even though it already had billions of dollars worth of CEL in its treasury. I am saying.
At the same time, the blockchain address associated with Celsius CEO Alex Masinsky is close to $ 40 million in lifetime, while publicly promoting the coin to Celsius customers on the same exchange where Celsius bought his own tokens with corporate funds. It seems that CEL was sold.
Earlier this morning, “0xB1” identified him on Twitter and named himself Jason Stone, who led a group of “talented individuals” who manage 0xb1 addresses from August 2020 to April 2021.
According to Arkham, Mr. Seth sent $ 534 million of crypto assets to 0xb1 in 260 transactions from August 2020 to April 2021, and then invested in activities that would bring some DeFi yields. ..
0xb1 also bought $ 6.3 million worth of NFTs, including CryptoPunks, Beeple art, and other projects.
Citing a chain analysis audit, the report states that by December 2020, Celsius had sent $ 365 million to 0xb1.
“Assuming the Chainalysis audit is correct, 0xb1 controlled more than 10% of Celsius’ total assets in late 2020,” the report said, and five months after the audit, Celsius had one more to 0xb1. An asset that added that it sent a $ 880 million customer cipher.
Meanwhile, KeyFi co-founder and CEO Jason Stone sued Celsius for refusing to respect my contract.
Stone is seeking damages for an amount “determined by trial.”
In a lawsuit filed by KeyFi in New York, Celsius used the client’s funds to “could not fulfill its promises because it could not establish basic accounting controls to manipulate the crypto asset market and endanger the same deposits.” Insist.
Celsius announced on June 12 a decision to freeze withdrawals and transfers from the platform for its customers due to “extreme market conditions”.
