The company badge, CEL, trades at 23 cents as of this writing, according to CoinMarketCap. This is a 92 percent reduction from April 8, when CEL was worth $ 3. The coupon was worth almost $ 7 a year ago. There have been questions about the high returns of Celsius Networks, its links to the failed stablecoin Terra and its stocks. The value of the assets on its platform fell by half to $ 12 billion in May, from $ 24 billion in December 2021. Between March and May, $ 1 billion leaked from the system, the Financial Times reported. In a June 7 blog post titled “Damn the Torpedoes,” the company said, “Celsius has the stock (and more than enough ETH) to meet its obligations, as dictated by the integrated liquidity risk management framework.” That was then. On June 12, an email to all customers started as follows: Due to the extreme market conditions, today we announce that Celsius is suspending all withdrawals, exchanges and transfers between accounts. We are doing this today to bring Celsius in a better position to honor, over time, his withdrawal obligations. Skeptics have been wary of the high returns Celsius has promised for years Theoretically, Celsius operates in much the same way as an ordinary bank, except for cryptocurrencies. He collects deposits and then lends them. An ad on the Celsius website as of this writing offered an annual percentage return of 18.63 on encryption deposits. Unlike a bank, Celsius does not have state-owned FDIC insurance that protects people in the event of a bank bankruptcy. Skeptics have repeatedly warned that the Celsius Network is bound to fail. Some have even argued that Celsius is a Ponzi scheme. Due to its size, Celsius touches many other parts of the cryptocurrency market. The Celsius Network, for example, borrowed $ 500 million from Tether, the fixed currency associated with the dollar. (The loan was originally $ 1 billion, Bloomberg reported.) The loan is secured in Bitcoin. “If Bitcoin falls, they give us a call margin [and then] “We need to give them more Bitcoin,” Celsius CEO Alex Mashinsky told the Financial Times last year. Even investors not directly involved in cryptocurrencies are exposed to degrees Celsius. Canada’s second largest pension fund, the Caisse de Dépôt et Placement du Québec (CDPQ), has invested as part of a $ 400 million stake in the company. Celsius lost millions in the BadgerDAO hack Regulators have expressed interest in the operations of the Celsius Network. Only on September 17, 2021, New Jersey issued a cessation and resignation order on the Celsius Network, Texas held a hearing to determine if it should issue a cessation and resignation, and Alabama asked Celsius why it should not be banned within a month. In October 2021, New York Attorney General Letitia James listed the company as one of the platforms requested to provide information about its activities and products, and Celsius said it was working with state regulators. There are more. Celsius CFO was arrested in Israel in November on suspicion of money laundering, fraud and sexual assault. (These allegations related to his behavior in his previous job; he was suspended in degrees Celsius after his arrest.) When the DeFi BadgerDAO platform was breached in December, blockchain activity showed that the Celsius network had lost $ 54 million worth of encryption. Customer and user assets of Celsius claim were not affected. In a note to customers, Celsius said that “the ultimate goal of the company is to stabilize liquidity.” He did not give a date for when customers would expect to be able to retire again, warning that “this process will take time and there may be delays”.
