Landing platform Celsius has placed approximately $534 million in client funds as part of “high-risk, leveraged crypto trading strategies” through KeyFi. According to Arkham analysts, this resulted in a loss of $390 million.

The extent of the Celsius crisis has so far been superficial and anecdotal.

Using on-chain and off-chain data and analytics, Arkham has revealed a more comprehensive picture of Celsius’s effectiveness. 1/14

— Arkham (@ArkhamIntel) 8 July 2022

According to the report, from August 2020 to April 2021 Celsius transferred $534 million worth of digital assets to an address associated with KeyFi.

According to Chaynalysis’ December 2020 audit report, at one point KeyFi controlled 10% of assets under Celsius management ($3.3 billion to $330 million).

From September 2020 to September 2021, KeyFi returned $1.14 billion in assets to Celsius – 113% profit in US dollars. Analysts stated that, given the market conditions during this time, the platform will only earn more if it keeps funds on the balance sheet.

“During Celsius’ collaboration with 0xB1 [связанный с KeyFi адрес] Bitcoin price rose from $11,000 to $60,000, more than 400%. Ethereum, another key asset that the platform has entrusted to 0xB1, rose 900% from $400 to $4,000. If Celsius had held these assets instead of sending them to a counterparty, they would have been valued at $1.49 billion, $350 million more than returned,” the analysts wrote.

Earlier, KeyFi president Jason Stone said his company is suing Celsius. The latter was accused of non-performance of contractual obligations, market manipulation, illiterate management and organization of the Ponzi scheme.

Arkham said the landing platform has spent more than $300 million purchasing its own CEL token to fulfill its obligations to users receiving returns in that asset. To do this, the company used centralized exchanges such as FTX and Liquid.

Alex Mashinsky, founder and CEO of Celsius, has regularly sold large volumes of CELs – according to the report, the total amount of tokens he has sold has reached 44 million.

Mainly used machine DEX It’s like Uniswap and Airswap, but it did some of the sales on the same centralized platforms where Celsius bought tokens.

Analysts highlighted that Celsius is one of the biggest players in the DeFi space. The platform has placed most of its funds in three protocols named Compound, Aave and MakerDAO.

For example, the company accounted for 2.5% of all Ethereum staking coins and 10% of the stETH synthetic token supply.

Recall that on July 7 Celsius closed the vault at MakerDAO and pulled 23,962 WBTC from the protocol. A few hours later, the platform transferred over $500 million in WBTC to the FTX exchange.

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