Celsius Network was a crypto lending and yield platform founded in 2017 and incorporated in the United Kingdom. The company operated a model that allowed retail users to deposit cryptocurrency and earn interest, while Celsius lent those assets to institutional borrowers and deployed capital into decentralised finance protocols. At its peak in 2021, Celsius reported over $25 billion in assets under management and claimed more than 1.7 million active users globally. Its rapid growth made it one of the most prominent centralised lending platforms in crypto.
The company raised significant equity capital across multiple rounds, including a Series B and a later round that valued it at over $3 billion. Investors included WestCap Group and CDPQ (the Quebec pension fund), among others. Celsius positioned itself as a regulated, trustworthy alternative to traditional banking for crypto holders, a claim that collapsed catastrophically in 2022.
As a corporate actor, Celsius also made direct strategic investments and acquisitions in the crypto infrastructure space. Its most notable acquisition was GK8, an Israeli digital asset custody technology firm, purchased in late 2021 for approximately $115 million. GK8 provided institutional-grade cold wallet and custody infrastructure, and the deal signalled Celsius's intent to expand beyond lending into broader financial services for institutions. The acquisition was later unwound during bankruptcy proceedings, with GK8 sold at a steep loss.
Notable investments
- GK8 – Israeli custody technology firm, acquired 2021 for ~$115M; sold during bankruptcy at a fraction of purchase price
- Strategic DeFi protocol positions – Celsius deployed user funds across Compound, Aave, and other protocols; these were operational positions, not disclosed equity investments
- StakeHound – Celsius held a significant relationship with StakeHound for liquid staking; a dispute over lost ETH private keys led to a $35M claim during insolvency proceedings
Public information on the remaining portfolio companies tracked under Celsius Network as a direct equity investor is limited. The company did not publish a formal venture portfolio and its investment activities were often intertwined with treasury management rather than traditional VC deal flow.
Team
Alex Mashinsky co-founded Celsius and served as CEO. He previously founded Arbinet and Transit Wireless, and holds patents related to VoIP technology. Mashinsky was the public face of Celsius, frequently appearing on social media and in media interviews to promote the platform. In July 2023, he was arrested and charged by the US Department of Justice with securities fraud, commodity fraud, and wire fraud. He pleaded not guilty; proceedings were ongoing as of early 2026.
Daniel Leon served as co-founder and Chief Operating Officer. Nuke Goldstein was co-founder and Chief Technology Officer. Both departed before or during the bankruptcy process. Mashinsky's trial, expected in 2025, drew wide attention given the scale of customer losses.
Recent activity
Celsius filed for Chapter 11 bankruptcy protection on July 13, 2022, weeks after freezing all customer withdrawals on June 12. The freeze trapped approximately $4.7 billion in user funds. A bankruptcy court-supervised restructuring process followed, lasting over two years. In early 2024, a reorganisation plan was approved that returned a portion of assets to creditors in cash and a new token issued by a successor entity, Ionic Digital.
The collapse of Celsius became one of the defining failures of the 2022 crypto credit crisis, alongside Three Arrows Capital and FTX. Investigations by the SEC and CFTC found that Celsius had misled customers about the safety of their funds and the nature of its business model. The platform's yield rates, which at times exceeded 17% APY on stablecoins, were unsustainable given market conditions.
Celsius Network no longer operates as a going concern. Its legacy is primarily one of cautionary reference for centralised crypto lending risk, custodial opacity, and the gap between marketing claims and actual balance sheet health. Any analysis of its investment portfolio must be read in that context.