Tether’s (USDT) chief technology officer Paolo Ardoino has denied that the stablecoin issuer took a loan from Celsius in a Jan. 31 tweet. Ardoino responded to a Twitter thread on the Celsius examiner report that said that Tether, alongside Three Arrows Capital and Alameda Research, could exceed their credit limits with the bankrupt lender. The report claimed that the stablecoin issuer had over $2 billion in exposure to Celsius and was considered an “existential threat” to the lender’s financial health. It added that Celsius’ couldn’t survive a Tether default because its capital was insufficient. (cryptoslate)

Bankrupt crypto lender Celsius misused investor and customer funds for years before its collapse, including to help its founders cash out tens of millions of dollars, a court-appointed examiner said in a new report.

Bankrupt crypto lender Celsius Network used investor money and customer deposits to prop up its own token, inflating its balance sheet while two of its founders cashed out millions, a U.S. court-ordered examiner report released on Tuesday showed.

Court-appointed examiner Shoba Pillay submitted her final report on select aspects of operations at bankrupt cryptocurrency Celsius on Jan. 31. The document was commissioned on Sept. 29 and is 470 pages long, not counting the 31 appendices.

Celsius’s finances were tracked across its various divisions in 15 separate Quickbooks files, Pillay wrote, without automatic systems in place to produce consolidated statements for the crypto lender that currently owes clients and creditors $5.5 billion.

Crypto lender Celsius operated a riskier business than advertised and failed to report hundreds of millions in losses, all while CEO Alex Mashinsky cashed out more than $68 million, according to a court-ordered report into its bankruptcy.

Celsius misled its investors – and on occasion used new customer funds to pay for other customers’ withdrawals, the usual definition of a Ponzi scheme, an independent examiner for the New York bankruptcy court said in a Tuesday filing.

Amid the ongoing bankruptcy hearing, the now-collapsed crypto lender Celsius Network has unveiled a plan to exit the process by rebranding it into a publicly traded recovery corporation.

In a Jan. 26 substack post, Fong said she had obtained leaked documents of Celsius bidding proposals which were submitted in November 2022. However, the bidding process seems to have been halted.

A judge overseeing bankruptcy proceedings for crypto lending firm Celsius Network has denied motions from three users with different claims on assets stuck since July.