Celsius Network is using a faulty referral program with undisclosed policies in order to gain new deposits and suspend accounts. @luismcsoul
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Celsius Network promotes a double bonus (sign up bonus plus referral bonus) to the user and new user joining the company while ONLY disclosing the following:
"Sign up with our referral code, make a first transfer of $400 or more and hold for 30 days to receive $50 in Bitcoin! Once you're registered, for every friend you invite, you'll get $50 and they'll get $50!"
After depositing the mentioned amount, the accounts of the people joining get suspended.
This requires the action of the Federal Trade Commission, because the company intentionally hides small notes (disclosures) that are attached to this process (and SHOULD BE PUBLIC).
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The disclosures should include 'at least' the following:
- Every new user must sign up and log in from a NEW DEVICE and use a DIFFERENT IP ADDRESS from previously registered users.
- Don’t share the HOTSPOT from a device with the Celsius App installed.
- In order to grant the bonus the transfer should come from OUTSIDE of the Celsius.Network.
- The ACCOUNT used for ‘depositing from’ and ‘withdrawing to’ the funds shouldn’t be directly associated in any transaction previously done by another Celsius.Network User.
- Related information, ie: MINIMUM BALANCES to be held after the 30 days, or if the bonus can’t be withdrawn, etc.
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The reason why Celsius Network intentionally hides this information…
Celsius Network waits until the deposit has been done because: by suspending the assets within their platform they are able to trade and earn interest, liquidity and farming yields with the resources of the people while having no obligation with them regarding the so called "Earn Rewards" that they are supposed to be receiving.
Considering the inflationary world we are living in and supposing the clients of the Celsius Network are able to get back their original deposits (after an unknown period of time), those assets without the promised interest yield have been basically losing purchasing power and so, this way of proceeding represents a scheme against its users.
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After people have called their service center…
Customers have received the following information: 'an investigation must be completed' and 'there's no timeframe to get to a resolution'. Meaning those savings can be compromised forever (if the company files for bankruptcy) or up to the point where a legal action is imposed. For this to happen US citizens must file complaints in their respective States (https://www.consumerresources.org/file-a-complaint/) and once coordinated with enough collective resources at stake, they could afford to file a case.
The Federal Trade Commission must force the company to include the mentioned disclosures, plus a clear incident roadmap resolution, because Celsius.Network is using AMBIGUOUS "Terms of Use": https://celsius.network/terms-of-use) in order to label deposit transactions as ‘fraudulent’ and consequently being entitled to suspend accounts. See the complete paragraph:
"Celsius may freeze, suspend or terminate your Celsius Account at any time in its sole discretion, in addition to taking any action and seeking any remedy it may be entitled to in law or in equity, including if Celsius suspects your involvement in any fraudulent activity of any kind or other misuse of the Services, provision by you of inaccurate or misleading information, or your involvement in any money laundering or other financial crime related to you or your Celsius Account."
Without the Federal Trade Commission intervention Celsius Network can perpetuate this scheme affecting many more citizens by receiving their deposits and suspending their accounts.
Celsius Network must be forced to make a public statement on this type of incidents and make a clear roadmap towards the resolution of such cases.
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These bonuses by Celsius.Network are unsustainable for any financial institution.
Let's put an example: Someone refers a friend, he effectively deposits 400 USD in the account, Celsius.Network must pay 100 USD (50 USD to the person signing up and 50 USD to the person referring) a return of 25% in ONE MONTH.
Obviously this example is extreme but the referral program certainly must be adjusted to a percentage where, even in extreme cases of people joining and withdrawing all the funds, including the bonus and rewards gained after 30 days, the company can still continue operating and gaining new customers, not by freezing their accounts, but by having them voluntarily holding their deposits in the platform.
Currently the ratings of the Celsius Network in TrustPilot is 16% Bad, including users affected by this type of incident.
The intention of this article is to be proactive and improve the processes of Celsius Network and other institutions in the industry towards long term sustainable models.
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luismcsoul
(Directing Creative Teams Towards Multiverses)
Report Number 147907269 submitted to the Federal Trade Commission https://reportfraud.ftc.gov/
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Image taken from “Vivir Invirtiendo (9 May 2022): @VInvirtiendo: https://pbs.twimg.com/media/FSU61OBXoAEtgDt?format=jpg&name=large
Other related suspicious operations come from the movements in the Cel token (trend by Jakal https://mobile.twitter.com/intel_jakal/status/1524798433386799106).
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