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Celsius on Thursday was sued by former investment manager Jason Stone, as pressure continues to mount on the firm amid a crash in cryptocurrency prices. Stone has alleged, among other things, that Celsius CEO Alex Mashinsky (above) was "able to enrich himself considerably."Piaras Ó Mídheach | Sportsfile for Web Summit | Getty ImagesCrypto lender Celsius artificially inflated the price of its own digital coin, failed to hedge risk and engaged in activities that amounted to fraud, a lawsuit alleges.Celsius on Thursday was…

A former investment manager at Celsius Network sued the crypto lender on Thursday, saying it used customer deposits to rig the price of its own crypto token and failed to properly hedge risk, causing it to freeze customer assets. The complaint said Celsius ran a Ponzi scheme to benefit itself through "gross mismanagement of customer deposits," and defrauded the plaintiff KeyFi Inc, run by the former manager Jason Stone, into providing services worth millions of dollars and refusing to pay for them. Celsius had no…

The US crypto lender Voyager Digital said that it had filed for bankruptcy, becoming another casualty of a dramatic fall in prices that has shaken the cryptocurrency sector. Crypto lenders such as Voyager boomed in the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. However, the recent slump in crypto markets-sparked by the downfall of two major tokens in May-has hurt lenders. New Jersey-based Celsius in June froze withdrawals and has hired…

Bitcoin, the world's biggest cryptocurrency, is down more than 50% since the start of 2022.Nurphoto | Getty ImagesBeleaguered cryptocurrency lender Vauld has been thrown a lifeline from larger competitor Nexo, in a sign of mounting consolidation in the crypto market.Nexo said Tuesday it had signed a term sheet with Vauld giving it 60 days of exclusive talks to explore an all-equity acquisition of the company. If successful, Nexo said it plans to restructure the company and pursue an expansion in Southeast Asia and…

Billions of dollars of value have been wiped off the cryptocurrency market in the last few weeks. Companies in the industry are feeling the pain. Lending and trading firms are facing a liquidity crisis and many firms have announced layoffs.Yu Chun Christopher Wong | S3studio | Getty ImagesCrypto lender Vauld on Monday paused all withdrawals, trading and deposits on its platform and is exploring potential restructuring options, the company said.Vauld CEO Darshan Bathija said in a blog post on Monday that the company is…

Sam Bankman-Fried’s FTX is taking advantage of rampant instability in the crypto lending market to assert itself while propping up major institutions. The company’s U.S.-based arm has a deal in place with troubled crypto lender BlockFi that gives them the option to buy the startup, recently valued at $2 billion, for up to $240 million based on the startup’s performance. BlockFi CEO Zac Prince did not disclose what the low end of the deal could look like in a thread disclosing the term sheet on Twitter. This…

FTX is swooping in to buy crypto lender BlockFi for pennies on the dollar, sources told CNBC.The term sheet is almost over the finish line and expected to be signed by the end of the week, according to three sources, who asked not to be named because the deal discussions were confidential. FTX is expected to pay roughly $25 million, one source said, 99% below BlockFi's last private valuation. Another person with direct knowledge of the deal pegged the price closer to $50 million. Jersey City, New Jersey-based BlockFi was…

Retail crypto lending platform Celsius Network said on Thursday it was exploring options including deals and restructuring its liabilities. Celsius earlier this month froze https://bit.ly/3bHo3Cf withdrawals and transfers, citing "extreme" market conditions, leaving its 1.7 million customers unable to redeem their assets. The Hoboken, New Jersey, company hired restructuring consultants from advisory firm Alvarez & Marsal to advise on a possible bankruptcy filing, the Wall Street Journal reported last week, citing…

Wall Street Journal: Sources: FTX is in talks to acquire a stake in BlockFi but no equity agreement has been reached; FTX gave the crypto lender a $250M credit line this week — FTX gave crypto lender a $250 million credit line this week — Crypto billionaire Sam Bankman-Fried has become a lender of last resort to his beleaguered industry. Wall Street Journal: Sources: FTX is in talks to acquire a stake in BlockFi but no equity agreement has been reached; FTX gave the crypto lender…

Tracy Wang / CoinDesk: Sources: Goldman Sachs is looking to raise $2B from investors to buy up distressed assets from troubled crypto lender Celsius in the event of a bankruptcy — The Wall Street firm is seeking $2 billion in commitments from investors to buy distressed assets at steep discounts if the crypto lender goes bankrupt. Tracy Wang / CoinDesk: Sources: Goldman Sachs is looking to raise $2B from investors to buy up distressed assets from troubled crypto lender Celsius in the event of a…