Digital asset platform Celsius is facing allegations of using new customer funds to pay for previous withdrawals.
An independent examiner’s report by Shoba Pillay found that the company used these funds for over a year, potentially putting their customers’ investments at risk.
Uncovering Celsius Illicit Acts
Celsius has been growing in popularity in recent years, with its assurance of high-yield interest rates on cryptocurrency deposits.
The platform claims to offer investors up to 9% annual returns on their investments, drawing in thousands of new customers through these promises.
However, the independent examiner’s report uncovers the truth about the company’s operations.
The report discovered that Celsius used new customer funds to settle past withdrawals, instead of utilising the interest generated from its investment portfolio as the company claimed.
This raised concerns about the company’s financial stability and the safety of its customers’ investments.
The report also uncovered that Celsius had insufficient internal management control, which allowed the misuse and mismanagement of customer funds to go without checks.
The company lacked proper checks and balances in place to ensure that funds were used appropriately and for each purpose.
This placed a question mark on Celsius’ capability to safeguard its customers’ investments and maintain its promises of high returns.
The news of the independent examiner’s findings has stirred up uproar in the digital asset industry.
Some customers have moved to withdraw their funds from the platform, raising concern among others who still have their funds in the platform.
The company has not made an official statement to address these complaints.
Issue of No Regulation in Crypto Space
The digital asset industry is still largely unregulated, making it easier for companies to engage in unethical practices.
In this case, Celsius’ use of new customer funds to settle previous withdrawals is a violation of trust and places customers’ investments at risk.
It is important to thoroughly research the company and understand how it generates profits before investing. The industry’s lack of regulation means that customers are largely responsible for their own due diligence.
The independent examiner’s findings have also stirred up conversations about the need for greater regulation in the digital asset industry.
Regulators should take steps to ensure that companies like Celsius are held accountable for their actions and that customers’ investments are secure.
This report on Celsius has raised serious concerns about the company’s operations and financial stability.
The findings of this report underscore the importance of needed regulation in the digital asset industry to protect customers’ investments.
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