Caisse de Dépôt’s controversial cryptocurrency partner, Celsius Network, has been accused by its ex-business partner KeyFi of setting up a “Ponzi scheme”.
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“The recent revelation that Celsius did not have the assets necessary to meet its withdrawal obligations shows that the defendants did in fact operate a Ponzi scheme,” claims a New York State court document provided to The Journal.
According to the complainant, Celsius faced a liquidity crisis and then offered hefty interest rates to attract new depositors.
As a result, the money was used to repay former depositors and creditors.
“Although Celsius continued to present itself as a transparent and well-capitalized company, it had actually become a Ponzi scheme,” the lawsuit argues.
The Mute Fund
The Caisse did not want to react to these explosive allegations on Friday.
“We will not comment. We continue to monitor the situation closely,” Caisse spokeswoman Kate Monfette told the Journal.
Celsius also did not respond to our interview request.