Celsius, who has been struggling, is facing fraud charges from a former employee.
A former executive of the company said Celsius, which froze its clients’ assets last month, used client funds to manipulate the token price and lost hundreds of millions of dollars by failing to hedge.
Celsius has generated more than $20 billion in revenue by offering interest rates of up to 18% to its customers who deposit their cryptocurrencies. Founder Alex Mashinsky ignored doubts as to whether these gains were sustainable.
KeyFi Inc, founded by the company’s former director, Jason Stone, filed a complaint against Celsius in New York state court.
Emphasizing that Celsius is a Ponzi scheme in the complaint, Stone said that he left voluntarily and refused millions of dollars in income.
Celsius’ spokesperson has yet to make a statement on the matter.
Celsius customers have been unable to access their funds since June 12.
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