Celsius faces a potential short squeeze; $20M bounty out on info about possible attack
Over the past week, we’ve had a lot of talk about Celsius and his founder, Alex Machine Ski. Some believe the situation is being hyped, while others fear that bankruptcy is inevitable.
The lack of transparency throughout the ordeal is extremely annoying for both individual and institutional investors.
$ 20 Million Bounty
A $ 20 Million Bounty It was allegedly issued for those who have information confirming that there was a coordinated attack on the Celsius network from a third party.
CryptoSlate has been reported to have received a request from a major crypto content creator asking if they were paid to spread FUD about Celsius.None of the creators we talked to have been approached to do so, but the report Plan Cof publication Anyone who has the information can receive the prize.
This bounty will reward everyone with information proving that Celsius was the target of a coordinated attack from a prominent institutional player. Market analysts argued that:
Whistleblowers willing to speak and provide conclusive evidence that there was a planned attack #Celsius You don’t have to work another day in their life.
Validated rewards presented by respected ones # Cryptography A group of over $ 20 million. #Bitcoin
DM Any information.
Please retweet 🙏
—Plan © ️ # CELShortSqueeze (@TheRealPlanC) June 19, 2022
CryptoSlate contacted PlanC, who confirmed that:
“I know the group, so I know the money is real. I talked to them directly, and they have a good reputation in cryptography.”
This group wants to be anonymous, so we cannot report the name of the organization at this time.However, if you have the information, please email the CryptoSlate research team or twitter..
Short squeeze like GameStop
Plan C also believes that there are “early signs of another GameStop situation” regarding the $ CEL short squeeze. On June 14, CryptoSlate reported that $ CEL tokens surged 500% in just 30 minutes. However, as the FTX chart below shows, there was a 2722% price spike from the local lows on June 13th to the top of the core on June 14th. This surge could undoubtedly result from a short squeeze of those who shorted $ CEL in the uncertainty of bankruptcy. Still, Plan C believes there is much more to come.
The current price of $ CEL is up to 86% in the last 24 hours, down 89% from the all-time high in June 2021. Plan C argues that the systematic attack on Celsius is due to liquidity issues. And they are not alone. Celsius investor Simon Dixon announced,
“The leverage boom and deleveraging crash smells like a mouse. It ends with banks buying crypto companies and stripping their assets before the CBDC rolls out. Don’t get me wrong, the crypto sector. Has done everything I teach investors to avoid, but I’m chasing money. “
The hashtag #CelShortSqueeze has generated over 7,440 tweets within the last 24 hours as investors jumped into the belief that the moon was visible. Allegations He was taken to FTX CEO Sambankman Fried, claiming to be behind the collapse of Celsius. SBF responded directly to allegations State“This is definitely wrong. We want to help people who can do it in the ecosystem. We are not interested in hurting them. It only hurts us and the whole ecosystem.” With over 100 comments, there was a great mix of distrust and support for SBF and FTX.
Some influencers in the crypto community have come out to support SBF, State, “FTX and Sam are alleged to have bailed out a large cryptocurrency company to limit this cryptocurrency crash.” Currently, SBF is not responding to requests for further comment. There is one thing for sure.There are a lot of imbalances transaction Related to $ CEL and FTX. There are many small spills of 10-100 $ CEL and some big spills Inflow Of 10,00 + $ CEL. The inflow seems to be getting $ CEL from other exchanges such as: MEXC, 1 inch, OKEX, Gate.io, Huobi Send to FTX.
This is not uncommon as traders move funds to another account, but the fact that some large wallets have $ CEL in FTX is not strange anywhere else. Interestingly Known wallet in Celsius Even if the withdrawal is paused, it is still active.
Collapse of Celsius
To further increase transparency, a video has come to light that includes comments from a former Celsius employee who claims to have made some “mistakes” in processing client funds. This video was released as part of the video by YouTuber and investigator Coffeezilla.
Coffeezilla commented that Machine Ski many times a year declared Celsius different from a bank, but still behaved like a bank. In addition, the Celsius Platform Terms of Service describe all ciphers sent by users as “loans” rather than actual deposits. The unnamed “insider” also claimed by Celsius:
“We engage in fairly risky practices, basically acquiring borrowed assets and lending multiple times to maximize their yields.”
They went on to explain Celsius as “a hedge fund that was playing with retail money is probably a pretty charitable way to explain it.” A former employee explained that Celsius invested ETH in the stakehound. In June 2021, Stakehound was involved in the incident, losing the key to 38,178 ETH and unreliably trapping the bet ETH. A former employee suggested that some of these funds were client funds from Celsius users.
Coffeezilla claims that Celsius has grown “too fast”, tried to “scale too fast”, and eventually “paid”. He says they recklessly invested their clients’ money and faced a liquidity crisis due to the natural downturn in the crypto market. Finally, Coffeezilla confirms that a former Celsius employee described the company as an “incompetent story.”
What’s next to Celsius?
No jury has yet been released regarding Celsius’s blunder. Some influential players claim that there was a coordinated attack on Celsius behind the scenes. Publicly, many simply declare that Celsius mismanaged his money and was the victim of his arrogance. If you have information about Celsius, you can contact CryptoSlate. twitter Or email me or twitter..
