A Caisse partner is accused of setting up a Ponzi scheme

Although its controversial cryptocurrency partner Celsius Network has just been accused in the United States of outright building a “Ponzi scheme”, the Caisse de depot refuses to comment on the case.

• Also read: Cryptocurrency: a v.-p. de la Caisse ran a company associated with the CEO of Celcius

• Also read: The cryptocurrency platform Celsius is heating up the Caisse

“The recent revelation that Celsius did not have the necessary assets to meet its withdrawal obligations demonstrates that the defendants did in fact operate a Ponzi scheme,” according to a New York Supreme Court document seen by The newspaper.

According to the complainant, Celsius suffered a liquidity crisis and then offered hefty interest rates to attract new depositors. Then the money would have been used to repay depositors and creditors.

Today, KeyFi CEO Jason Stone believes Celsius owes him money. The newspaper couldn’t reach him on Friday.

The Mute Fund

Accompanied by The newspaperThe Fund did not want to react to these explosive allegations.

“We will not comment. We continue to monitor the situation closely,” her spokeswoman Kate Monfette said.

Last February, the CEO of the Caisse, Charles Emond, assured this protocol that the company “facilitates the transfer of assets in a secure and transparent manner”.

Last year, the Caisse stated: “In order to mitigate the risk of criminal activity, Celsius has implemented identity verification protocols according to recognized standards such as KYC [connaissance du client] and AML [antiblanchiment] “.

However, as of June 12, Celsius has frozen withdrawals from its 1.7 million members, who are stamping their feet as they wait to get their money back.

Keep in mind that Celsius used to offer its depositors a yield of 18.6%, which has nothing to do with traditional banks.

To taunt traditional financial institutions, the Celsius CEO would occasionally appear in a sweater that read, “Banks are not your friends. »

Celsius also did not respond to our interview request on Friday.

Excessive risk taking

In the last few days the Wall Street Journal (WSJ) revealed that Celsius was taking far more risks than its leaders publicly said, based on documents distributed to investors last year.

According to those documents, Celsius had $19 billion in assets (including $12 billion in customer deposits) and just under $1 billion in equity as of last summer.

checked by the AMF

In autumn 2021, The newspaper pointed out that the Autorité des marchés financiers (AMF) has its eye on Celsius, where the Caisse de dépôt just closed a $400 million investment round with the WestCap fund.

“The elements put forward by a number of regulators in the United States challenge us and we are analyzing the situation,” went as far as to say his spokesman Sylvain Théberge.

Last February, Québec Solidaire even asked the AMF to launch an investigation into Celsius, in which the Caisse and its partners have invested more than $750 million.

This Friday, the AMF declined to comment.

♦ In its message to Quebecers, the AMF sends a message on its website: “Beware of offers that are too good to be true. There are no great returns without risk,” says the financial market watchdog.

Celsius network

  • Foundation, endowment : 2017
  • CHAIRMAN: Alex Maschinsky
  • Investors: CDPQ, Western Cape
  • The headquarters : London
  • Members : 1.7 million

Source: Celsius Network

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