Crypto lending platform Celsius handed over approximately $530 million worth of corporate funds to an asset manager who engaged in high-risk leveraged crypto trading strategies, making the capital compared to the value of the crypto asset originally sent $350. There was an obvious loss of million subscriber funds. According to a report was returned.
According to an on-chain analysis by blockchain analytics firm Arkham Intelligence, the asset manager has been identified as investment firm Battlestar Capital/KeeFi, led by co-founder and CEO Jason Stone, who goes by the pseudonym “0xB1”. working as.
In October 2020, Stone assumed the title of head of DeFi staking at Celsius following Celsius Network’s acquisition of KeFi.
The report further states that Celsius has spent over $350 million to buy its own crypto token CEL on exchanges, even though it already had billions of dollars worth of CEL in its coffers.
At the same time, blockchain addresses associated with Celsius CEO Alex Mashinsky sold around $40 million of CEL throughout its lifetime, sometimes on the same exchanges where Celsius bought its tokens with corporate funds, while publicly offering Celsius customers. Coins promoted.
Earlier this morning, “0xB1” revealed his identity on Twitter by addressing himself as Jason Stone, who from August 2020 to April 2021 led a group of “talented individuals” who managed the 0xb1 address. did.
Arkham said Celsius sent 0xb1 $534 million of crypto assets in 260 transactions ranging in size from $1,000 to $28 million from August 2020 to April 2021, which were then invested in a number of DeFi yield bearing activities.
0xb1 also purchased $6.3 million worth of NFTs, including Cryptopunks, Beeple Art and other projects.
Citing Chainalysis audits, the report states that as of December 2020, Celsius had sent $365 million in funds to 0xb1.
“ChainAlysis’s audit is correct, 0xb1 held more than 10% of all Celsius assets under management at the end of 2020,” the report said. Property.
Meanwhile, Jason Stone, the co-founder and CEO of KeyFi, has sued Celsius for refusing to honor the contract he made with me.
Stone is seeking damages for “an amount to be determined during the trial.”
A lawsuit filed by KeyFi in New York claimed that Celsius “used customer funds to manipulate the cryptocurrency asset markets, failed to establish basic accounting controls that put those same deposits at risk, and made promises.” Failed to complete.”
Celsius, on 12 June, announced its decision to halt withdrawals and transfers from its platform for its customers due to “extreme market conditions”.