Celsius Network
CEL
Fraudulent Token
AI Analysis
Comprehensive evaluation of the token
Celsius Network (CEL) is a defunct token associated with a failed crypto lending platform that collapsed and halted operations in June 2022. Active Development and Community Support sections were excluded due to insufficient data (-1.0) resulting from the complete wind-down and abandonment of the project. The weighted average across the remaining sections (Tokenomics: 2/10, Market and Use Case: 1/10, Team and Governance: 1/10, Security and Audit History: 1/10) yields a score of 1.3. Severe qualifying red-flag events are affirmatively established, including institutional insolvency and major enforcement actions: 'SEC charged Celsius Network Limited and Alex Mashinsky with fraud, unregistered securities, and CEL market manipulation on July 13, 2023 (SEC PR 2023-133).' The token has no surviving operational utility, negligible trading volume, and is deprecated.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Celsius Network (CEL)
Celsius Network (CEL) is a deprecated ERC-20 token on the Ethereum blockchain that originally functioned as the native utility token for the defunct Celsius Network cryptocurrency lending platform. CEL was designed to provide users with utility discounts, preferential loan terms, and interest bonuses on deposited crypto assets. Following the collapse and subsequent wind-down of the Celsius Network platform, the project emerged from Chapter 11 bankruptcy on January 31, 2024, shut down its mobile and web applications on February 29, 2024, and completed a 94% supply burn in April and May 2024, leaving the token without an active product, roadmap, or operational use case.
The collapse of Celsius Network began on June 12, 2022, when the platform halted all withdrawals, swaps, and transfers, rendering customer funds inaccessible. In July 2022, Celsius filed for Chapter 11 bankruptcy amid catastrophic insolvency and the misappropriation of over $4 billion in customer deposits, after years of misrepresenting platform safety, risk, and financial health to users.
The project and its leadership were subsequently subject to extensive federal regulatory actions. On July 13, 2023, the U.S. Securities and Exchange Commission (SEC) charged Celsius Network Limited and founder Alex Mashinsky with fraud, the unregistered offer and sale of securities through the Earn Interest Program, and market manipulation of the CEL token. Concurrently, the Commodity Futures Trading Commission (CFTC) brought enforcement actions leading to a consent order that permanently enjoined Mashinsky from anti-fraud violations and imposed lifetime trading and registration bans. Additionally, the Federal Trade Commission (FTC) secured a $16.5 million settlement against executives Alex Mashinsky, Shlomi Daniel Leon, and Hanoch "Nuke" Goldstein, alongside bans on marketing or selling financial products. The CEL token remains entirely defunct with no active development, governance, or surviving utility.