Celsius Network operated as a classic ‘Ponzi scheme,” the former head of the company’s key investment strategy alleged in a lawsuit. Former head of company’s key investments said the company used deposits to cover huge liabilities caused by reckless mismanagement. Jason Stone, whose company KeyFi partnered with Celsius to run its decentralized finance investment business in 2020 and 2021, said in the suit that the crypto lender failed to take steps to hedge against volatility, leaving it massively exposed to the recent crypto market volatility. Alex Mashinsky, founder and CEO of Celsius Network, says the company failed to protect customer assets and used customer deposits to prop up its own coin. The lawsuit is expected to last on July 7, 2022 at 8:58 p.m. ET . . .
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