According to Arkham analysts, landing platform Celsius has placed approximately $534 million in client funds under “high-risk, leveraged crypto trading strategies” through KeyFi. This has resulted in a $390 million loss.
According to the report published by the company’s analysts, from August 2020 to April 2021, Celsius transferred $534 million in digital assets to an address associated with KeyFi. The latter placed most of these funds in various DeFi protocols and invested $6.3 million in NFTs.
Based on Chainalysis’ December 2020 audit report, at one point KeyFi controlled 10% of assets under Celsius management ($330M out of $3.3B).
From September 2020 to September 2021, KeyFi returned $1.14 billion in assets to Celsius: a USD-denominated profit of 113%.
According to the company’s analysts, taking into account the market conditions during this time period, the platform would have earned more if it simply kept funds on the balance sheet.
