Of course FTX gets all the mentions when it comes to fraudulent crypto companies. However, the Celsius case was also particularly bad. And Mashinsky was also particularly unrepentant and in your face about it.
The first issue was Celsius offering up to 17% APY. This was of course a huge red flag, but unfortunately this was only a green flag for the greed of many people who sadly believed that such returns were possible, or rather that a company would give out those kinds of returns and not keep much more for themselves.
Of course, the Ponzi crashed, but just before it did 4 Celsius execs managed for raid the coffers for $34M. What insidious, or devilishly brilliant as some would say, is that the execs used CEL tokens as collateral for loans to “borrow” company funds. Of course, after withdraws were halted and later bankruptcy came the value of these CEL tokens would massively fall in value, although that wouldn't be their problem.
All told the company had a hole of $4.7 Billion dollars owed to some significant portion of their 1.7 Million customers. Just to rub it in, Mashinsky and his wife started selling “Unbankrupt Yourself” t-shirts as a play/pun on the Celsius slogan “Unbank Yourself”.
Given all of this insanity it is strange it retrospect to even imagine how all this was possible, and yet it was. And it was really sad seeing the absolute financial ruin many people were left in after Celsius collapsed(see the last CNBC link below). Once more the morals of the story are not your keys not your crypto and don't be greedy.