Celsius Under Investigation Over Allegations Of Operating Like A Ponzi Scheme

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Alex Mashinsky; Photo Source: Yahoo Finance
In the words of Greg Pesce, Celsius Creditors' Committee's lawyer, “We don’t know if Celsius was a Ponzi scheme, but there are flags that came up. Let me make it clear we’re looking into whether it is.”

Ever since Celsius filed for Chapter 11 bankruptcy, many of the platform’s clients alleged that its operations resembled a Ponzi Scheme.

As a response to their demands, Martin Glenn, the federal judge overseeing the Celsius bankruptcy case, expanded the scope of the probe into the platform's bankruptcy proceedings.

Now, Shoba Pillay, the court-appointed external examiner, will investigate Celsius’ transactions involving CEL tokens. She is also authorized to probe Celsius’ crypto holdings and account offerings.



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In her own court filings, Pillay stated that the information collected by her during the course of the investigation will be added to a database.

“[Shoba Pillay’s] work will assist all parties in this case precisely because she is neutral and her work will be public, allowing all parties to have a basic understanding of the facts.”

Going forward, Pillay will consult with the Celsius Creditors' Committee to decide who will lead the probe into Celsius. Pillay plans to reveal the results of her investigation into Celsius’ operations in December.

Written by
Ayush Pande
In the words of Greg Pesce, Celsius Creditors' Committee's lawyer, “We don’t know if Celsius was a Ponzi scheme, but there are flags that came up. Let me make it clear we’re looking into whether it is.”

Ever since Celsius filed for Chapter 11 bankruptcy, many of the platform’s clients alleged that its operations resembled a Ponzi Scheme.

As a response to their demands, Martin Glenn, the federal judge overseeing the Celsius bankruptcy case, expanded the scope of the probe into the platform's bankruptcy proceedings.

Now, Shoba Pillay, the court-appointed external examiner, will investigate Celsius’ transactions involving CEL tokens. She is also authorized to probe Celsius’ crypto holdings and account offerings.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


In her own court filings, Pillay stated that the information collected by her during the course of the investigation will be added to a database.

“[Shoba Pillay’s] work will assist all parties in this case precisely because she is neutral and her work will be public, allowing all parties to have a basic understanding of the facts.”

Going forward, Pillay will consult with the Celsius Creditors' Committee to decide who will lead the probe into Celsius. Pillay plans to reveal the results of her investigation into Celsius’ operations in December.

Written by
Ayush Pande