Celsius Network Is the Subject of Complaints

Celsius Network Is the Subject of Complaints

Money.nikaniku.com – Celsius Network Is the Subject of Complaints. Jason Stone, who works for Celsius Network through his company KeyFi, filed a complaint against the stage. He accused his former partner of not paying him because of the payment. On the other hand, Jason Stone argues that Celsius is implementing a strategy in a Ponzi scheme.

Jason Stone, a former subcontractor of stage Celsius with his company KeyFi, has filed a complaint against his former partner. The lawsuit was filed in a New York court. This concerns a commercial dispute over a payment that Celsius was supposed to make to KeyFi. Between August 2020 and March 2021, Jason Stone claims to have managed “billions of dollars” on Celsius’s behalf.

Overall, an agreement was made so that KeyFi would transfer the intellectual property of its know-how and employees to Celsius for the management of certain operations. In exchange, KeyFi will receive 7.5% of the net profits from the betting business and 20% of the net profits from the decentralized finance (DeFi) business.

Celsius Accused of Ponzi

According to KeyFi’s complaint, the sharp rise in digital money prices in 2021 resulted in significant losses to Celsius due to non-permanent losses not covered. However, users are legitimately expected to find the exact amount of digital money they have deposited. This forces the stage to buy ETH at historically high prices to overcome the problem.

To make up for the losses, Celsius was then alleged to have artificially inflated his platform’s returns, creating a Ponzi scheme. The operation attracts new entrants, the newly acquired funds will then be used to pay for existing financial backers. Additionally, Jason Stone said Celsius will use users’ Bitcoin (BTC) deposits to increase the price of its token, CEL.

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Of course, all these statements must be taken with conditions. Granted, this is just a declaration of justice’s concern for the court’s request, but nothing at our level will allow us to prove it true. What is also surprising is that the plaintiffs did not disclose this until a year after the relationship with Celsius ended.

However, KeyFi will, until then, try to find a friendly solution. Despite everything, if the stage gets out of the bad situation he is currently in, it will be difficult for him to regain the financial backer’s trust.

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