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Investors Sue Celsius

After Celsius filed for bankruptcy, the lending platform is now facing legal backlash.

By Mike Hesp
• 3 min read
Investors Sue Celsius

After Celsius filed for bankruptcy, the lending platform is now facing legal backlash. Investors are taking action against the bankrupt company with a class-action lawsuit.

Just a few days after Celsius filed for bankruptcy, the bankrupt lending platform faces the following problems.

Thanks to a class-action lawsuit filed by affected investors, Celsius's executives can soon appear in court. The accusation: the crypto company sold "tens of billions of dollars in unregistered securities as part of a Ponzi scheme." Celsius could maintain the promised returns only because new investors kept coming on board.

The lawsuit targets CEO Alexander Mashinsky and three other executives. In addition to the class-action, a former Celsius employee has filed a lawsuit against the lending platform. The accusation: market manipulation.

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