Celsius Network price crashed hard on Thursday as investors reacted to the latest lawsuit of the company’s CEO. CEL tumbled to a low of $0.243, which was the lowest level since June last year. It has crashed by more than 94% from the highest point in September. The CEL token has a market cap of over $123 million.
Celsius Network CEO sued
Celsius Network was once one of the best-known companies in the crypto industry. It acted as a crypto bank that provided deposits and returns to shareholders. The company also provided a crypto exchange that made it possible for people to buy and sell cryptocurrencies. At its peak, the company had over $20 billion in assets.
Celsius Network collapsed in May 2022 when Terra’s ecosystem collapsed. It suspended its payments and finally filed for bankruptcy. The bankruptcy proceedings are still continuing in the United States. On Wednesday, a judge ruled that $4.2 billion of funds in its interest-bearing accounts belonged to the firm. As such, the company’s customers will not receive these funds.
The other main catalyst for Celsius Network price was a lawsuit filed by the New York Attorney General. In a statement, the AG accused the company’s CEO of defrauding investors by making false statements that its company was safe. The lawsuit said:
“Alex Mashinsky (the CEO) promised to lead investors to financial freedom but led them down a path of financial ruin. The law is clear that making false and unsubstantiated promises and misleading investors is illegal.”
26,000 New York residents had deposited $440 million in the company. Mashinsky is the other high-profile crypto founder who is facing a legal peril after Sam Bankman-Fried (SBF). SBF faces tens of years for his role in the collapse of FTX and Alameda.
Is Celsius token a good investment?
Celsius Network token has been in a freefal since the company went burst. Therefore, we believe that the coin is not a good investment. Besides, it is a thinly traded coin. Data published by CoinMarketCap shows that the volume of CEL token traded in the past 24 hours was about $1 million, which is much lower for a token that is valued at over $120 million.
This is not to say that Celsius Network token cannot make you rich. In the past few months, we have seen some useless tokens like Bonk soar.
