Caisse de dépôt's controversial cryptocurrency partner, Celsius Network, is accused by its ex-business partner, KeyFi, of setting up a "Ponzi scheme".
• Read also: Cryptocurrency: a v.-p. de la Caisse ran a company linked to the CEO of Celcius
• Read also: The Celsius cryptocurrency platform is heating up the Caisse
“The recent revelation that Celsius does not have the necessary assets to meet its withdrawal obligations shows that the defendants were in fact operating a Ponzi scheme,” alleges a New York State court document seen by The Journal.
According to the plaintiff, Celsius faced a cash crunch and subsequently offered hefty interest rates to attract new depositors.
As a result, the money was used to repay former depositors and creditors.
“So while Celsius continued to present itself as a transparent and well-capitalized company, it had in effect become a Ponzi scheme,” the lawsuit argues.
The Mute Fund
On Friday, the Caisse did not want to react to these explosive allegations.
“We will not comment. We continue to follow the situation closely”, was limited to telling the Journal the spokesperson for the Fund, Kate Monfette.
Celsius also did not respond to our interview request.