Bankrupt cryptocurrency lender Celsius Networks allegedly defrauded investors out of billions of dollars

As Celsius grew larger it had trouble generating enough revenue to pay the high returns and “moved into significantly riskier investments, extending hundreds of millions of dollars in uncollateralized loans, and investing hundreds of millions of dollars in unregulated decentralized finance platforms,” the lawsuit alleges. When faced with losses, the lawsuit alleges, Mashinsky hid them from investors and continued to tout the safety of the platform to recruit new investors.