Celsius lost over US$350 million in DeFi: report

Celsius over US$1 billion of assets in decentralized finance (DeFi) and incurred over US$350 million in losses, according to a report by blockchain analytics firm Arkham Intelligence.

See related article: Celsius repays debts, cuts jobs amid bankruptcy fears

Fast facts

  • Celsius handed over about US$530 million in corporate funds to an asset manager who used “high-risk leveraged crypto trading strategies,” the report said. Arkham identified the asset manager in question as Jason Stone, CEO of investment firm KeyFi.
  • The trades resulted in forced liquidations worth US$61 million and total apparent losses of US$350 million, the report stated. From the over US$1 billion in DeFi, Cels lost more than US$100 million to hacks, the analysis said.
  • According to the report, when the market crash in early June put Celsius at risk of liquidation, the firm put in roughly US$750 million to maintain the positions, “potentially playing a key role in forcing them to freeze withdrawals.”
  • Despite holding billions of dollars worth of its native token CEL, the firm spent more than US$350 million purchasing the token from exchanges.
  • Celsius CEO Alex Mashinsky sold US$45 million worth of CEL tokens, sometimes on the same exchanges where Celsius used corporate funds to buy CEL, the report said.
  • An email seeking a comment from Celsius on the Arkham report went unanswered outside of US business hours.

See related article: Celsius shuffles its board of directors amid liquidity crisis

Leave a Comment

Your email address will not be published.

%d bloggers like this: