Episode Details

In this episode of pplpod, we investigate the spectacular rise and fall of Celsius Network, the cryptocurrency lender that once managed nearly $12 billion in assets. We break down how the company lured millions of customers with promises of high interest rates on crypto deposits, only to freeze all withdrawals in June 2022 amidst "extreme market conditions".

Join us as we uncover:

• The Business Model: How Celsius operated like a bank for crypto—taking deposits and issuing loans—while claiming to return up to 80% of revenue to its community.

• The "Bank Run": The events leading to the Chapter 11 bankruptcy filing, which revealed a staggering $1.2 billion deficit and left users as unsecured creditors.

• Ponzi Allegations: Internal documents and lawsuits that described the operation as "Ponzi-like," involving the endless re-hypothecation of assets to juice yields.

• The Aftermath: The company's 2024 exit from bankruptcy as a new Bitcoin mining firm, Ionic Digital, and the legal reckoning for founder Alex Mashinsky, who was sentenced to 12 years in prison for fraud in May 2025.