- Arkham Intelligence unveiled a lot deeper perception into Celsius Network’s enterprise practices than beforehand reported in the media.
- Celsius entrusted company funds value $530 million to an asset supervisor who engaged in high-risk crypto leveraged buying and selling.
- Also, Celsius reportedly expended tens of millions buying CEL on exchanges, regardless that they already had billions of {dollars} value of CEL.
Arkham Intelligence, a blockchain analytics agency, has carried out analysis to provide a lot deeper perception into Celsius Network’s enterprise practices, insider exercise, and deployment methods “than previously reported online or in the media”
They made their findings public on July 7 through a 24-page PDF file entitled “Report on the Celsius Network.”
According to the report, Celsius entrusted company funds value roughly $530 million on the time of switch to an asset supervisor who engaged in high-risk leveraged crypto buying and selling methods that resulted in $61 million of compelled liquidations. The complete obvious loss was $350 million when the asset supervisor returned capital in comparison with the worth of the crypto belongings Celsius initially despatched on the time of return.
Arkham additionally identified the asset supervisor because the group behind funding firm Battlestar Capital / KeyFi, led by co-founder and CEO Jason Stone, who pseudonymously operated because the well-known 0xB1. In October 2020, CEO Stone assumed the title of “Head of DeFi Staking at Celsius” following the community’s acquisition of KeFi.
Moreover, Arkham found that regardless of its public emphasis on institutional lending as its supply of yield, Celsius deployed over $1 billion in belongings to DeFi protocols, the place it misplaced over $100 million to hacks. Interestingly, Celsius spent over $350 million buying their crypto token, CEL, on exchanges, regardless that they already had billions of {dollars} value of CEL in its Treasury.
The report additionally alleged that in keeping with blockchain addresses related to Celsius CEO Alex Mashinsky, he bought $45 million of CEL, generally on the identical exchanges the place the corporate purchased their token with company funds.
