Federal Investigations Against Bankrupt Crypto Lender Celsius 

Federal Investigations Against Bankrupt Crypto Lender Celsius 

Written by Sophie Robertson, In Crypto, Published On
December 6, 2022

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Celsius is one of the top firms that achieve higher rates of sell-off in the Crypto industry. But this performance was disturbed in May when the collapse of Terra Blockchain took place. With this, the firm became bankrupt and now has to face the headaches of legal inquiries.

In recent news, the announcement of investigations against Celsius is taking a toll. This Crypto lender is going bankrupt which led the US Fed to investigate this matter! This brand is receiving inquiries from different institutions like FTC, SEC, and CFTC. Also, a grand jury of the Fed has been issued against this firm.

Federal Investigations Against Bankrupt Crypto Lender Celsius

More On This Matter

Bloomberg has issued certain reports on this aspect and it reflects the condition of this firm at present. The US fed is investigating this bankrupted Crypto firm. As per the documents submitted by the attorneys for this firm’s committee, the scope and amount of investigations for debtors by governmental institutions are quite important.

Celsius has to face the imposition of this investigation in around forty states along with the inquiry of the federal authority. In the fresh updates, the firm’s facing different investigations from the US federal authorities.

In a recent filing, the lists of all unsecured creditors were revealed by the lawyers of this firm’s committee. The important part is that many customers of this firm fall on the list of unsecured creditors. This is quite an astonishing part of the report and critical as well.

Celsius Will Face More Troubles Ahead

The council says that the total number of and range inquiries of all the debtors by the legal entities are very important. The firm has to face investigations in more than forty states which will involve the Fed as well.

Bloomberg also reveals in a document that Celsius is under the target of different other states too! In earlier times, the commissions like FTC, SEC, and CFTC issued inquiries against this Crypto lender.

The judge under whom the case is bestowed is receiving many letters from different customers of this firm. Their allegations are on the firm that was providing them false information and is a fraud. The users are also accusing the firm’s former CEO, Alex. These users are saying that he has deceived them by hiding all the risks that this firm involves while lending digital assets.

To investigate all of these accusations, the judge appointed another examiner. This examiner was in charge of exploring through all the allegations put forth by the users of the firm.

Also, this company went a step further to freeze the withdrawals of all its users in June. They did this to remove any cases of panic by the users. But, after a month, Celsius filed for a case of Bankruptcy. After all of these situations, all users are criticizing the firm’s marketing or management tactics.

The CEO of Celsius Is In Problem Too

After the case of insolvency came out, the users are accusing the CEO as well. They are stating that he kept the users in the dark and provided them with false information on the risks of this firm. In September he resigned from the post of CEO of this firm. But before the entire panic started, the exec removed around 10 million USD from the firm. And, after removing this amount, they paused every other withdrawal of their users.

In another case, an examiner who performs under the false name of Coffeezilla accused Alex of other events as well. He stated that this Ex-CEO is still tippin huge amounts of CEL coins.


The entire company of Celsius is now under severe allegations of fraud and the spreading of false information. It is going through many inquiries, as all its users are accused of keeping them away from correct information about risky assets.

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