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Former Celsius senior executives have revealed the crypto lending company had been struggling internally for years before going bankrupt, contrary to the firm’s claims that its problems stemmed from the recent market crash.

According to the employees, Celsius was disorganized and lacked proper risk management. Internal documents reviewed by CNBC showed that the crypto lender would invest in high-risk crypto projects and borrow money to hedge funds in return for higher yields. The firm would then share the profits with customers.

Another Celsius employee who wished to remain anonymous alleged that while Celsius was incentivizing customers to buy CEL, the company’s CEO, Alex Mashinsky, was secretly selling off his tokens.

The allegations from former Celsius employees align with those of the company’s former money manager Jason Stone, who sued the crypto lender for fraud, lack of proper risk management, and market manipulation.

Meanwhile, a document from Celsius’s first bankruptcy hearing revealed that about 77% of the crypto assets deposited on the platform belong to the company and not customers.

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