Celsius Network
CELCryptocurrency earning and borrowing platform
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Project Overview
Celsius Network is a cryptocurrency earning and borrowing platform that offers its customers interest of up to 18% on deposits of cryptocurrencies.
Celsius Founder Seeks Overturn of 12-Year Sentence, Accuses FTX of Attempting to 'Destroy Celsius'
Odaily Celsius founder Alex Mashinsky has filed a motion with a New York court, seeking to overturn his 12-year sentence for fraud and market manipulation.Court documents show that Mashinsky chose to proceed pro se after his lawyers withdrew, claiming they 'stopped communicating' with him, forcing him to file documents personally with the court. He argues that his previous defense constituted 'ineffective assistance of counsel' and invokes the 'fruit of the poisonous tree' doctrine, challenging the legality of certain evidence in the case.In his filings, Mashinsky also accused Sam Bankman-Fried of intending to 'destroy Celsius' and attributed market manipulation related to the CEL token to FTX. Additionally, he publicly disclosed text messages with former Celsius Chief Revenue Officer Roni Cohen-Pavon, alleging that Cohen-Pavon attempted a 'hostile takeover' of the company.In 2025, Mashinsky pleaded guilty to commodities fraud and securities fraud, was ordered to forfeit $48 million, and must also pay a $10 million settlement to the U.S. Federal Trade Commission. Cohen-Pavon, who previously testified as a cooperating witness for the prosecution, has been sentenced to 'time served' and ordered to pay over $1 million in fines. (Cointelegraph)
BIS Warns: Crypto Exports Are Evolving into "Shadow Banks," Leaving Users Exposed to Unsecured Risks
the Bank for International Settlements (BIS) has released a report stating that crypto exchanges are increasingly offering banking-like services, such as lending and yield-bearing products (Earn), but lack the regulatory oversight and deposit protection found in traditional financial systems, posing systemic risks.The report states that these high-yield products are essentially more akin to "unsecured loans." User assets are often used by platforms for high-risk operations such as lending, trading, or market making, while users only hold a claim against the platform. If the platform encounters problems, users are directly exposed to solvency risks.The BIS also noted that major crypto platforms have evolved from simple exchanges into "multi-functional intermediaries," integrating the functions of banks, brokerages, and exchanges, but with insufficient transparency and risk isolation mechanisms. The collapses of Celsius Network and FTX are typical examples of this structural risk. Additionally, the report mentions the crypto market flash crash in October 2025, which triggered approximately $19 billion in forced liquidations, highlighting the risk of cascading effects under high leverage and opaque structures. (CoinDesk)
Related news
Celsius Founder Seeks Overturn of 12-Year Sentence, Accuses FTX of Attempting to 'Destroy Celsius'
Odaily Celsius founder Alex Mashinsky has filed a motion with a New York court, seeking to overturn his 12-year sentence for fraud and market manipulation.Court documents show that Mashinsky chose to proceed pro se after his lawyers withdrew, claiming they 'stopped communicating' with him, forcing him to file documents personally with the court. He argues that his previous defense constituted 'ineffective assistance of counsel' and invokes the 'fruit of the poisonous tree' doctrine, challenging the legality of certain evidence in the case.In his filings, Mashinsky also accused Sam Bankman-Fried of intending to 'destroy Celsius' and attributed market manipulation related to the CEL token to FTX. Additionally, he publicly disclosed text messages with former Celsius Chief Revenue Officer Roni Cohen-Pavon, alleging that Cohen-Pavon attempted a 'hostile takeover' of the company.In 2025, Mashinsky pleaded guilty to commodities fraud and securities fraud, was ordered to forfeit $48 million, and must also pay a $10 million settlement to the U.S. Federal Trade Commission. Cohen-Pavon, who previously testified as a cooperating witness for the prosecution, has been sentenced to 'time served' and ordered to pay over $1 million in fines. (Cointelegraph)
GXD Labs and EquitiesFirst Reach Settlement on Celsius Claims, Involving $500 Million Payment
GXD Labs, a digital asset investment and advisory firm, has reached a settlement with global equity financing company EquitiesFirst regarding claims arising from a loan extended to the bankrupt crypto lending platform Celsius Network. Under the settlement agreement, the two parties will complete a total payment of $500 million and dismiss the adversarial litigation and related arbitration proceedings initiated since September 2023.It is reported that GXD Labs established the Blockchain Asset Recovery Investment Consortium (BRIC) in 2023. Subsequently, the organization was appointed by the debtor and the unsecured creditors' committee in the Celsius bankruptcy case as the administrator for complex asset recovery and litigation management. (Businesswire)
Former Celsius Executive Roni Cohen-Pavon Agrees to Forfeit $1.07 Million Ahead of Sentencing
According to Cointelegraph, in the latest court filing, Jay Clayton, U.S. Attorney for the Southern District of New York, stated that Roni Cohen-Pavon, former Chief Revenue Officer of the bankrupt crypto-lending platform Celsius, has agreed to a forfeiture judgment of $1.07 million, which the government deems tied to his illicit proceeds. Cohen-Pavon pleaded guilty in September 2023 to charges of fraud and conspiracy to manipulate the price of Celsius’s CEL token and is scheduled to be sentenced this Thursday. Prosecutors did not propose a specific sentence but requested that the court consider his “substantial assistance.” The filing also notes that cash or crypto assets Cohen-Pavon has already paid in the Celsius bankruptcy case may be credited toward the forfeiture amount.
BIS Warns: Crypto Exports Are Evolving into "Shadow Banks," Leaving Users Exposed to Unsecured Risks
the Bank for International Settlements (BIS) has released a report stating that crypto exchanges are increasingly offering banking-like services, such as lending and yield-bearing products (Earn), but lack the regulatory oversight and deposit protection found in traditional financial systems, posing systemic risks.The report states that these high-yield products are essentially more akin to "unsecured loans." User assets are often used by platforms for high-risk operations such as lending, trading, or market making, while users only hold a claim against the platform. If the platform encounters problems, users are directly exposed to solvency risks.The BIS also noted that major crypto platforms have evolved from simple exchanges into "multi-functional intermediaries," integrating the functions of banks, brokerages, and exchanges, but with insufficient transparency and risk isolation mechanisms. The collapses of Celsius Network and FTX are typical examples of this structural risk. Additionally, the report mentions the crypto market flash crash in October 2025, which triggered approximately $19 billion in forced liquidations, highlighting the risk of cascading effects under high leverage and opaque structures. (CoinDesk)