Lending firm Celsius Network is facing allegations that it used customer deposits to purchase $558 million worth of CEL.
Celsius purchase demand soars
On Cam Crews Twitter, mentioned In a previous post, Zach Wildes, head of community for the Celsius Network, argued that Celsius’ improper sale of $558 million in customer deposits to buy $CEL did not drive up the price. .
According to Crews, the reason is that the platform has reduced CEL’s funding by an undisclosed amount.
Celsius Network set its CEL supply at 700 million, but to date owes 378 million CEL.
Celsius has purchased every CEL token at least once, spending more than 14x its market cap in 2019 on purchases. As a result, demand increased and the price of CEL increased.
On the other hand, prior report Visualize the correlation between Celsius purchases and prices. The report supports the hypothesis that platform purchases increased her CEL price.
![Celsius purchased CEL-1 using $558 million in customer deposits.](https://crypto.news/app/uploads/2023/03/WhatsApp-Image-2023-03-07-at-13.34.34.jpeg)
In addition, the employee deliberately purchased CEL to allow surge and acknowledged the action. “Prices drive prices,” said Johannes Treutler, senior token analyst at Celsius.
As Crews says, Celsius changed public perception of CEL, contributed to fraudulent purchases, and tricked customers into buying OTC.
In a subsequent tweet, Crews claimed that Celsius was using Instilend, software owned by Anthony Napolitano’s parent company, Investview Inc., to “almost inadequately” account for institutional loan and collateral payments or receipts. He added that he made adjustments.
Celsius allows customers to withdraw funds
After suspending withdrawals for 265 days from June last year, the platform is now allowing customers to withdraw their assets.
The company sent an email to customers last month with withdrawal eligibility details stating that customers with funds in custody accounts are eligible.
Eligible customers can withdraw up to 94% of their funds, 6% subject to future hearings.
There is a withdrawal limit of 72.5% for customers who have transferred funds to their Earn account. Plus, the maximum is $7,575 per withdrawal.