Crypto Contagion: Celsius Crisis Continues

It’s been a month and some weeks since Celsius stopped all forms of activities from their platform without giving a concrete reason to their users instead they played the terms and conditions card against them until it was discovered they had a debt problem and also a $1.2 billion black hole in their finances which they haven’t been able to fill and also, it has even led them to start proceedings to file for bankruptcy.

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Two weeks ago, an ex-employee of Celsius filed a lawsuit against them after they finished paying their debt to Three Arrows Capital, the lawsuit was that Celsius wasn’t telling the truth to their users as to why they are keeping their money from them and it’s because they used the user's money for other businesses, lending them out and in the process losing it to the bear market and also unable to recover the money loaned out and all this was done without thinking about their users.

As if that was all, recently another ex-employee has also come out to lay a complaint against Celsius but this complaint is that the current problem Celsius is facing now is due to mismanagement and they are disorganized. The ex-employee Timothy Cradle said the executives were manipulating the CEL tokens in the market and this complaint was also stated out also in the lawsuit filed by the other ex-employee two weeks ago, so can we now say they are right?

Also, Timothy Cradle stated that the company is hiding under a false claim of restructuring and the public or users should know that it’s going to be impossible for the company to recover from their current crisis he suggested that it’s better for the users to count their loss and move on.

The current crisis Celsius is facing is also affecting other crypto lenders like Voyager Digital, Nexo, and BlockFi, it’s like a plague spreading and affecting the crypto lenders. However, Coinbase in a statement said the crisis being faced by crypto lenders won’t come near them and even though other companies are being dragged down by the crypto contagion they would have no exposure to it.

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