{"id":507153,"date":"2022-11-04T21:30:00","date_gmt":"2022-11-04T18:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-biz-was-celsius-just-a-ponzi-after-all\/"},"modified":"2022-11-04T21:30:00","modified_gmt":"2022-11-04T18:30:00","slug":"crypto-biz-was-celsius-just-a-ponzi-after-all","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/","title":{"rendered":"# Crypto Biz: Was Celsius just a Ponzi after all?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27874d8e71c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27874d8e71c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/#%E2%80%9D_Crypto_Biz_Was_Celsius_just_a_Ponzi_after_all_%E2%80%9C\" >&#8221; Crypto Biz: Was Celsius just a Ponzi after all? &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/#Judge_orders_probe_to_investigate_whether_Celsius_was_a_Ponzi\" >Judge orders probe to investigate whether Celsius was a Ponzi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/#Twitter_monetization_and_free_speech_drove_Binances_500M_injection_%E2%80%94_CZ\" >Twitter monetization and free speech drove Binance\u2019s $500M injection \u2014 CZ<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/#MicroStrategy_CEO_reiterates_%E2%80%98long-term_Bitcoin_play_in_Q3_earnings\" >MicroStrategy CEO reiterates \u2018long-term\u2019 Bitcoin play in Q3 earnings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/#Moneygram_to_enable_users_to_buy_sell_and_hold_cryptocurrency_via_mobile_app\" >Moneygram to enable users to buy, sell and hold cryptocurrency via mobile app<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-was-celsius-just-a-ponzi-after-all\/#Before_you_go_Why_did_Dogecoin_pump_this_week\" >Before you go: Why did Dogecoin pump this week?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_Biz_Was_Celsius_just_a_Ponzi_after_all_%E2%80%9C\"><\/span>&#8221; Crypto Biz: Was Celsius just a Ponzi after all? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvZGU1ZjVlZWItNzMzNS00ZDFjLThjN2ItNmQ5MjM2MzRlODRkLmpwZWc=.jpeg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>Crypto lender Celsius was one of the biggest casualties of the bear market. After halting withdrawals for months due to \u201cextreme market conditions,\u201d the distressed lender officially filed for Chapter 11 bankruptcy on July 13. Now, the federal judge overseeing the bankruptcy proceedings has ordered the case examiner to determine whether the company was operating like a Ponzi scheme. Disgruntled Celsius customers have made a strong case that the company\u2019s business operations met the legal definition of a Ponzi. After all, it didn\u2019t take long for Celsius\u2019 business model to crumble under volatility. This is one case we should all be monitoring very closely.\u00a0<\/p>\n<p>In this week\u2019s Crypto Biz, we once again revisit the Celsius debacle. We also explore Binance\u2019s investment in Elon Musk\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> deal and MicroStrategy\u2019s renewed commitment to Bitcoin.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Judge_orders_probe_to_investigate_whether_Celsius_was_a_Ponzi\"><\/span>Judge orders probe to investigate whether Celsius was a Ponzi<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In finance, a Ponzi scheme is a fraudulent investment practice where returns are generated and paid out to existing investors using money from later investors. Allegations of being a Ponzi have now been levied at Celsius by its former customers, who say the firm used the assets of new users to pay yields and facilitate withdrawals of existing users. These allegations are being taken seriously by Federal Judge Martin Glenn, who ordered the case examiner and committee of Celsius creditors to probe the matter closely. Glenn was quoted as saying he was \u201cshocked\u201d when he saw redactions made by Celsius related to an Oct. 11 motion that outlines employee bonuses. This one could get explosive. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Twitter_monetization_and_free_speech_drove_Binances_500M_injection_%E2%80%94_CZ\"><\/span>Twitter monetization and free speech drove Binance\u2019s $500M injection \u2014 CZ<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Crypto exchange Binance was one of several firms to help finance Elon Musk\u2019s $44 billion acquisition of Twitter. Binance doled out $500 million to help fund the initiative, with CEO Changpeng \u201cCZ\u201d Zhao touting Twitter\u2019s monetization potential and eventual transition to Web3 as core reasons behind the investment. Of course, CZ expects to be paid back one day \u2014 even though Twitter has only occasionally turned a profit since it went public in 2013. I wouldn\u2019t hold your breath, CZ. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A small contribution to the cause. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/xD9XZxOWfL\">https:\/\/t.co\/xD9XZxOWfL<\/a><\/p>\n<p>\u2014 CZ  Binance (@cz_binance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance\/status\/1522164316551667712?ref_src=twsrc%5Etfw\">May 5, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3><span class=\"ez-toc-section\" id=\"MicroStrategy_CEO_reiterates_%E2%80%98long-term_Bitcoin_play_in_Q3_earnings\"><\/span>MicroStrategy CEO reiterates \u2018long-term\u2019 Bitcoin play in Q3 earnings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Business intelligence firm MicroStrategy has no plans to unwind its massive exposure to Bitcoin and will continue investing in the digital asset for the long term. That commitment didn\u2019t come from Michael Saylor, who stepped down as CEO in August to focus on Bitcoin (BTC) evangelism, but from new company head Phong Le. \u201cWe have not sold any Bitcoin to date,\u201d Le said during MicroStrategy\u2019s Q3 earnings call. \u201cTo reiterate our strategy, we seek to acquire and hold Bitcoin for the long term. And we do not currently plan to engage in sales of Bitcoin.\u201d MicroStrategy reported a net loss of $27.1 million for the quarter. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Moneygram_to_enable_users_to_buy_sell_and_hold_cryptocurrency_via_mobile_app\"><\/span>Moneygram to enable users to buy, sell and hold cryptocurrency via mobile app<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Fresh <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> on the adoption front: digital payments company MoneyGram has announced that nearly all of its United States customers can buy, sell and hold cryptocurrencies through its mobile <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>. The company will initially support Bitcoin, Ether (ETH) and Litecoin (LTC) transactions, with plans to add more crypto assets in 2023. MoneyGram\u2019s global audience is over 150 million people. If crypto adoption takes off in the United States, we could see similar support being launched worldwide. However, that will depend on regulations, the company said. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Before_you_go_Why_did_Dogecoin_pump_this_week\"><\/span>Before you go: Why did Dogecoin pump this week?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The cryptocurrency market rallied sharply to end October, with popular memecoin Dogecoin (DOGE) surging 150% on the back of Elon Musk\u2019s purchase of Twitter. Are we still in a bear market, or have the tides turned? In this week\u2019s Market Report, I sat down with Marcel Pechman to discuss how Musk\u2019s Twitter purchase could impact crypto and whether we are nearing a definitive bottom for this cycle. You can watch the full replay below (spoiler alert: I\u2019m not very optimistic): <\/p>\n<p><iframe loading=\"lazy\" title=\"Why Dogecoin pumped 150% after Elon Musk\u2019s Twitter acquisition\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/YZlZNs0ofJc?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><em>Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-biz-was-celsius-just-a-ponzi-after-all\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto Biz: Was Celsius just a Ponzi after all? &#8220; Crypto lender Celsius was one of the biggest casualties of the bear market. After halting withdrawals for months due to \u201cextreme market conditions,\u201d the distressed lender officially filed for Chapter 11 bankruptcy on July 13. Now, the federal judge overseeing the bankruptcy proceedings has&#8230;<\/p>\n","protected":false},"author":1,"featured_media":507154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvZGU1ZjVlZWItNzMzNS00ZDFjLThjN2ItNmQ5MjM2MzRlODRkLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,77672,82739,4978,117,39394,10401],"class_list":["post-507153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-changpeng-zhao","tag-moneygram","tag-bankruptcy","tag-business","tag-elon-musk","tag-twitter"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=507153"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/507154"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=507153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=507153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=507153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}