Celsius Network former director of financial crimes compliance Timothy Cradle has come forward to say that there was insufficient risk management which made the present events possible.
Speaking to CNBC, Cradle said the company had a culture of internal missteps which are directly linked to the current predicament.
The Cryptocurrency lender recently filed for bankruptcy, but several employees have come forward to speak about deeper issues with the company.
“I think Celsius had a good idea, they were providing a service that people really needed, but they weren’t managing risk very well”, Cradle told CNBC.
Celsius Network has tried to keep its cool in the wake of the financial debacle with the latest evidence suggesting that the company is solely responsible for events.
The downfall of the company began with the freezing of withdrawals. This and the bankruptcy have been blamed on “extreme market conditions”, something that many have disagreed with, given the new evidence of Celsius’ business practices.
According to the CNBC report, Celsius was bent on growing and expanding, lending money behind the scenes to hedge funds who promised big yields.
Investigative journalist Otteroo recently stated that, as a result, the funds that were missing from the company were not the $1.2bn suggested by the chief executive officer, but a bigger sum.
“The compliance team was too small”, Cradle admitted to the media. He attested that as early as 2019, the company was talking about “pumping” a token known by “cel” and created by the company.
“They weren’t shy about it. They were absolutely trading the token to manipulate the price”, Cradle said.
More revelations are bound to be forthcoming as Celsius Network’s bankruptcy has attracted a lot of eyeballs.
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