Banks Are Not Your Friend: Celsius Moving From Incompetence to Fraud

Scandal rocks cryptocurrency lending platform Celsius as users accuse the company of moving from incompetence to fraud, leaving investors questioning the safety of their funds.

The discovery was made known by a popular youtuber “Coffeezilla.”

With over 2 million subscribers, Coffezilla has established himself as one of the most popular influencers on YouTube. He is an investigative journalist who is passionate about exposing scams and fraudsters. Given his expertise in this area, it’s no surprise that he has insider knowledge of some of the dirty secrets that plague the major financial industry. In a recent video, he chose to reveal a few of these secrets to the public.

Coffeezilla Reveals Celsius Fraud Secrets

16 hours ago, Coffeezilla published a video claiming that there is an extreme incompetence in the DeFi banking system that in many cases has ruined the lives of people.

“Celsius was engaging in fraudulent activities, such as using fake testimonials and inflating interest rates as well as manipulating the market to benefit itself and its insiders” he claims.

Coffeezilla asserts the company kicked off as a phoenix rising from the ashes of the contemporary banking system arguing that the contemporary banks were lending out the money of customers and keeping the profit to themselves.

Coffeezilla’s real name is Stephen Findeisen.

The company with the popular slogan “banks are not your friend” offer to level the playing field by offering risk free investment where customer have 8% yield on investments at the time when the traditional financial banks offer less than 1% as well as give 80% profit as reward to customers with a promise of collateral backup, thereby making the company less risky than its competitors.

With this initiative, the company was able to raise $50 million from the community, $400 million from investors and was able to achieve 30 billion in assets.

How The Mighty Has Fallen

Coffeezilla in his exposing video says that “Celsius did not distribute 80% of its revenue to its customers as promised because it had little or no profit” he further explains that the CEO of the company, Alex Machinsky, withdrew millions from Celsius before the collapse of the company.”

Another point made by this journalist is that Celsius had been giving out unsecured loans and incurred about $800 million in losses as at 2021 which was not reported to their customers.

Even though the evidence provided so far has not been enough to pin the Alex Machinsky to this fraud, Coffeezilla mentioned that the crypto platform was using customer funds to buy their own token called “CELL” to as to create activity in the market as well as boost the price of this token and avoid crashing the price.

His final words on the issues was that the company also used customer funds to pay employees as well as buy employee CELL tokens.

Key Takeway

The allegations made by Coffeezilla are very serious and should be taken seriously by Celsius and the wider cryptocurrency industry. The use of fake testimonials, inflating interest rates, and manipulating the market is not only illegal but also unethical.

The fact that Celsius raised $50 million from the community and $400 million from investors shows the growing popularity of cryptocurrency and the need for reliable and trustworthy platforms. However, the recent scandal could lead to a loss of trust in the wider cryptocurrency industry, especially among those who are new to the industry.

Trajectory in the crypto world shows that there have been several other scandals in the cryptocurrency industry, including the recent collapse of FTX, Bitconnect and the QuadrigaCX scandal. These events highlight the need for stronger regulation and oversight in the cryptocurrency industry to prevent fraud and protect investors.

Watch the Coffeezilla’s Video

To get a full picture we strongly advise you to watch the video yourself:

Exposing Celsius – A Billion Dollar Fraud