Stockpulse’s exceptional Surveillance tool has uncovered unique information from social media data that indicates earlier problems at the highest management of Celsius Network.
The analysis conducted using our data shows disturbing practices from Celsius’s management towards its clients. We analyzed social media activity between March and May and found clusters of issues experienced by retail investors.
Promo code scam
Celsius’s tremendous growth of users was mainly due to an aggressive marketing strategy. The management was generous in its offerings (in the form of bonuses) to its newly joined members. However, it appears that many of Celsius’s users experienced issues with the promised promotions from the company. After registering and adhering to the requirements to be eligible for the bonuses, promos, benefits, and referrals, the company didn’t deliver on its promise, which infuriated retail investors.
The company drew as many clients as possible prior to the account withdrawal restriction and consequently bankruptcy.
Accounts accessibility issues
Both existing and new clients have experienced unexplainable issues where their accounts have been blocked, the app crashing regularly, transferring issues, etc. It appears that during the period between March and May, all the way until the 12th of June (account withdrawal restriction imposed by Celsius), people suddenly couldn’t reach their funds. Lots of users have been vocal on social media regarding this issue which looks like a synthetic restriction from Celsius Network before the official statement.
Customer Service issues
Many accounts have unexplained restricted access, so users tried contacting customer support, which proved extremely difficult. In some cases, customer support didn’t even reply at all. It appears to be that Celsius’s management did everything in their power to keep clients’ funds in their Celsius accounts.
After some of the users were able to get a hold of their account, for a yet again unexplained reason, their accounts have been put into HODL mode. The Celsius app allows its clients to enable HODL mode, which restricts them from accessing their funds. You guessed it, the only way to un-HODL is to contact customer support. To users’ surprise, the customer service did not respond again.
Celsius Network’s C-executives associating with fraudsters
It appears that C-level executives at Celsius Network are comfortable sharing a podium with individuals who are considered by retail community as scammers. There are a series of posts on Twitter where the CEO of Celsius and Scott Melker engaged with one another. Retail investors called the CEO out for associating with him, but their tweets were deleted, and many were censored to suppress that information. Nevertheless, the community raised this issue, and the public started questioning the integrity of Alex Mashinsky.
Evidence of market abuse by the CEO
Other data gathered from social media reveals information that the CEO has…