Celsius Examiner: 'Withhold' and 'Custody' Products Flawed in Accounting Controls and Operations

According to Bloomberg, examiner Shoba Pillay of the encrypted lending platform Celsius Network released an interim report detailing the accounting control and operational deficiencies of two products related to Celsius’s custody of digital assets for customers, and raised whether and how these users can be compensated The problem. The report stated that both products "Withhold" and "Custody" allow users to keep digital currency in the custody of lenders while maintaining ownership, but Celsius does not have sufficient accounting and operational controls or technical infrastructure. The "Custody" plan was launched, and as a result, the platform had excess funds on June 10, but the product was underfunded on June 24, with a gap of 24%. In addition, the "Withhold" product fails to separate the various assets related to the account from the debt. Since there is no separation between the account and the assets, it is difficult for them to track their own assets, which may complicate the reimbursement work of customers.