It is looking like the lawyers will have the last laugh here, again. They seem to have been granted a blank check and are taking full advantage of it. The term ride it like it's stolen comes to mind.
And just like in Highlander, there can only be one. And in this case, with the recent indictment against Alex Mashinsky and Celsius. And if you do not know of the snake in human clothes that is Alex Mashinsky, first be glad. Second, he is the former CEO of Celsius. One of the bigger crypto Ponzi schemes. I think only rivaled by FTX.
The list of who is suing them is a long one as well. DOJ, SEC, FTC, and the CTFC, so more or less the entire alphabet of who is looking to have their day in court. And Alex is also facing civil charges on top of the criminal once. All of this only means one thing, Celsius lawyers are having a smorgasbord feast. They are able to rack up an incredible amount. Abd By the looks of thing they will only leave as few crumbs as they can to Celsius victims.
Twitter user 
But it can't be that bad surely, right, right? Well, back when Celsius filed for bankruptcy, in July last year. Twitter user
It appears that CElsius have been doing fairly ok tho. I mean considering the company is supposed to be bankrupt. They have not let what little remains of their assets sit idle. Instead, they have staked the majority of it. And from the looks of things that have earned them a pretty penny.
According to known Celsius addresses they have just last month staked, directly or through a second party, a total of 771,600 $ETH. And there might be some that are not publicly known as well. They are also currently running what is called MEV botts. And thanks to them they have made $10 million in staking rewards. And they are currently earning around $1 million a month thanks to the MEV bots.
If you are like me and have not here about these MEV bots before this. I will be happy to share what I recently learned. They apparently work by including uber-quick arbitrage, front-running, and so-called “sandwich attacks,” all taking place within the same block. And while it is a grey area, there are a lot of people not super happy about the entire thing. But then there are those who just see it as getting that little extra, and they're not hurting anyone.
I have to say I am feeling very Natalie Imbruglia over all this (she had a massive hit with a cover called Torn). While I approve of not letting the funds just sit idle, staking them and thus earning interest would mean, in the best of worlds, that more people can get more money back. But then utilizing MEV botts, that to me is not really sitting very well. And if we look at crypto globally I think that this indeed can lead to some serious repercussions.
What these MEV bots are doing is the exact thing that the BIS report highlighted as a problem with mining. And while Ethereum now has moved away from proof of work to proof of stake. It appears that have not solved any of these issues. Talking about frontrunning and sandwich attacks. This could very well be a pandora's box situation if it is left to continue as is. Because the majority of people are blissfully unaware. As soon as that changes all it takes is one person to start the legal ball rolling. And there is n telling where or when that ball will stop if it starts rolling. To summarize I think the staking is very good. But the MEV botting is extremely crap.
Now we are getting to the lawyers. I will start by saying this, I can not wait for AI to make these f-kers unemployed fast enough. I have no idea why or how they are left totally unchecked like this. Well, I know because if anyone tried to do anything about it they would sue them because they are lawyers. And that's sort of their thing. But I mean if they put in salary roof in several sports, which I am totally for by the way. Where is the billing roof for layers? Why are they able to just bill left and right insane amounts of money? I mean wtf are they doing over there? What is it Celsius is doing that they need to hire not one, not two, but 14 law firms? Either someone should be held accountable over at Celsius for approving all that crap. Or better yet, the lawyers should be held accountable.
Link to this document is at the bottom
I mean just look at this breakdown that
But I am really looking forward to hearing what you, yea you. What are you making of all this? Think things are as they should or are you slightly thinking that this is a bit insane? Let me know what you make of this situation. And make a guess at what you think the final legal bill will land at.
If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead. I have also just become a partner at Medium, signing up using my referral link or just following me there is also a great way to support me.
https://medium.com/@bo.daniel.jensen/membership
See you on the interwebs!
Picture provided by: https://pixabay.com/, Fair use, https://twitter.com/camcrews
Resources
