Celsius failed to report $800 million in losses as CFO flagged 'possibly illegal' behavior
Crypto lender Celsius operated a riskier business than advertised and failed to report hundreds of millions in losses, all while CEO Alex Mashinsky cashed out more than $68 million, according to a court-ordered report into its bankruptcy. concealed the extent to which it was market-making for its native token.
The report also detailed staff fears about whether they were complying with the law, including comments from Harumi Urata-Thompson, who served as chief financial officer from February 2020 to November 2021, that "we are doing something possibly illegal.". Celsius's marketing told customers that it made low-risk and fully collateralized investments to secure the yields it offered, according to Pillay. Yet when the lender filed for Chapter 11 bankruptcy protection last July, it reported a $1.2 billion hole in its balance sheet.
