Celsius reviewer: There are deficiencies in accounting controls and operations for custodial products, and the user claims process is more complicated

ChainCatcher news, according to a report by Bloomberg, a mid-term report released by the examiner Shoba Pillay of the bankrupt crypto lending platform Celsius Network details the deficiencies in accounting controls and operations related to two products that the company used to hold digital assets for customers, raising questions about whether and how these users will be compensated.

The report states that the "Withhold" and "Custody" products both allow users to retain ownership while entrusting their digital currencies to the lender for safekeeping. However, Celsius launched the "Custody" program without sufficient operational controls and technical infrastructure. As a result, the platform was overfunded by $50.5 million on June 10. On June 24, the product was underfunded by $24 million.

Additionally, the "Withhold" product failed to separate various assets associated with accounts from liabilities. Due to the lack of separation between accounts and assets, users found it difficult to track their own assets. (Bloomberg)