In light of its continuing legal fights and promises to repay its consumers, the bankrupt crypto lending business Celsius Network has just shifted its crypto assets.
Crews claimed that the 695,658,160 CEL tokens now in circulation were nearly entirely comprised of tokens transferred by the defunct cryptocurrency lender. Since only 238,863,520 of these tokens are now in circulation, this also proves that the business has transferred unsold tokens.
Some have speculated that Celsius Network is trying to unload these tokens, but the business has not yet explained why it executed these transactions. However, they believe no one will be interested in purchasing them since their value is “zero.” From its $8 all-time high, CEL has dropped by more than 98%.
This comes as the firm prepares to shut down its app in November, after which it will reimburse consumers in full and start a new creditor-owned firm, dubbed “NewCo.”
Another user of X commented on the recent deals by calling the protagonist “Sam Bankman Machinsky.” This is likely due to the fact that Alex Mashinsky, the creator of Celsius, and Sam Bankman-Fried (SBF), the founder of the now-defunct cryptocurrency exchange FTX, have both been accused of scamming their respective client bases.
Securities fraud, commodities fraud, and wire fraud against consumers have all been leveled against both Mashinsky and SBF. SBF, in contrast to Mashinsky, is now on trial and may face a maximum sentence of 100 years in jail if proven guilty.
Bloomberg states that Mashinsky’s trial date is set for September 17 of next year. Since cryptocurrency cannot be classified as a security, his attorneys will likely claim that their client did not conduct securities fraud.
Former Celsius Network Ltd. CEO Alex Mashinsky’s criminal trial has been set for September 17, 2024. After Celsius’ ex-Chief Revenue Officer (CRO) Roni Cohen-Pavon pled guilty to criminal charges against Mashinsky, it is believed that one of Mashinsky’s close acquaintances would testify against him, as was the case with Sam Bankman-Fried.
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