Just In: Celsius Was Using Customer Deposits To Fund Withdrawals

It’s been just revealed that the Celsius platform was using customer deposits to fund withdrawals, according to the latest news. Check out the new details below.

According to the latest reports coming from he online publication Daily Hodl, the collapse of crypto lender Celsius shows that the firm was using customer deposits to pay for withdrawals, according to an independent examiner.

In a new court filing with the United States Bankruptcy Court in the Southern District of New York, bankruptcy examiner Shoba Pillay, a former federal prosecutor, said that Celsius used customer funds to meet withdrawals in certain cases, particularly in the days leading up to the bankruptcy filing.

“For some crypto assets, Celsius unwound crypto deployments (such as coins deployed on DeFi [decentralized finance] protocols) to meet customer withdrawal requests.”

He continued and said the following:

“But that was not always the case, and in several coins, Celsius used incoming customer deposits to fund withdrawals in the days prior to the Pause. The following are examples involving two coins identified by the Examiner based on a non-exhaustive review of a subset of crypto assets withdrawn by Celsius customers between June 9 and June 12.”

The filing gives a specific example from June 2022 involving Gemini USD (GUSD), the stablecoin issued by crypto exchange Gemini.

The same online bpucalitiont mentioned above notes the fact that the filing said the following:

“Celsius began June 10 with 1.96 million GUSD, but honored 3.96 million GUSD withdrawals over the next three days, leaving Celsius with a 2 million GUSD deficit.”

At the moment of writing this article, BTC is trading in the red, and the king coin is priced at $23,023.

It’s been just revealed that a crypto strategist who correctly called the 2018 Bitcoin (BTC) thinks that the king crypto is not yet done rallying.

Pseudonymous analyst Smart Contracter said recently that Bitcoin might be mirroring its Q2 2019 “echo bubble” setup. If you recall, that was when BTC meteorically rose from $4,000 to around $14,000 in a few months.

Check out our previous article in order to learn more details about this.