Today we’re going to be examining @Coffeezilla’s Celsius video. In his video, he rails against Alex Mashinsky, talks to a robot, and also discusses some of the victims plights.
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What is up guys welcome to Big Boy Crypto my name is Ben today we are going To be examining coffee zilla's Celsius Video in this video he rails against Alex machinski talks to a robot and also Discusses some of the victims plights It's obviously been a big year for Coffeezilla uh he blew past a million Subscribers this year uh he just tweeted He's on the Joe Rogan podcast today so Absolutely phenomenal congratulations Coffee Zilla for a great year Um Celsius obviously I had coins on Celsius we lost about three million Dollars total and hopefully we'll get Some of it back one day I'm not super Hopeful about that uh right now we're in The midst of fighting against retail Clawbacks that's really the fight that I've taken up right now so let's get Into it I'm going to react to Coffee Zilla's video on Celsius Foreign Celsius is a billion dollar Company that told its customers to Unbank yourself with crypto but then They last year they declared bankruptcy And sold a new shirt Unbankrupt yourself That's a pretty good shirt that's a Pretty good shirt and I actually know The person who came up with the phrase Unbank yourself the slogan for Celsius You want to talk about regrets like That's a big regret now the first crypto
Conference I ever went to was a Blockchain world I think conference it Was in Atlantic City in July of 2018 And John McAfee was supposed to be the Main speaker well John McAfee didn't Show up in person he eventually did do a Remote talk but the first Speaker the Keynote speaker that took over for John McAfee uh on day one to start the Conference was Alex machinski first time I had ever seen him first time I'd ever Heard about Celsius and I remember like I was sold on what he was talking about He was talking about bringing the next 100 million people into crypto well Ironically he probably said 100 million People out of crypto now at the time I Reported on Extreme incompetence but Stopped short of using the f word fraud Because we just didn't have all the Evidence but today that changes because Of thousands of pages of new court Documents Celsius insiders talking and My personal interviews with victims now It's going to be really interesting to See how he uh plays these Um the court documents because it looked Like that was some stuff from The Examiner The Examiner report actually Really didn't have anything that was Super condemning Um it was just a poor report it should Have had condemning stuff in it but it Was probably constructed make no mistake
This was a gigantic fraud people's lives Have been ruined and the founder might Get away with it that's definitely not What we want to see all right if there Is fraud and I believe that there is you Know Alex machinski does deserve to be Held accountable probably needs to do at Least some time in prison uh over this I Don't know how long Maybe not maybe as Much as SPF gets I don't know 10 to 15 Years uh I don't know maybe at least Five we'll have to see what happens here Trying to light on this issue here is my Full investigation into the crypto Lender Celsius From corporations that dominate our Lives and that system right does now Work for 95 of the people on the planet I think algebrazinski actually started Out with good intentions I really do I I Think he has problems with being a Narcissist and I think that eventually Things got out of control but the reason Why he connected with people so well is Because I think at one time he was Genuine you you hear in these sound Bites like he's a really good speaker Why because the banks control all the Money in the world we talk about all the Money in the world what Celsius does is Really helps people navigate in a safe Way into this environment so when you Use a Celsius wallet you know okay I'm Gonna earn yield and I'm gonna stay safe
In a safe environment because Celsius Already did the homework and figured out What's safe because you're safe you're You're safe if you're a user with your Funds on the platform uh and behind the Scenes all the people in charge of Generating the yield are doing the most Risky insane game when you've ever seen Banks are not your friends But Alex is your friend yes that pizza I I have a lot of my own money in the Company uh several 100 million dollars As well I'm talking about as a user of The service not as a equity shareholder And so basically everybody uh came in And said hey can I take the same ride on The same bus with you you're earning 8.8 Can I earn it then the answer is yes you Get exactly the same you have a hundred Dollars or a thousand dollars a million Dollars you earn the same yield as Everybody else If you earn 8.8 percent on assets that Get Frozen that you never give back you Didn't actually earn anything Celsius Customers told me that the reason they Switched was just to get a higher yield And so that's what I thought I was doing I thought I was loaning money to someone That had posted a lateral to pay back in The event of a default so we've Collected over 700 million dollars all Of interest from the institution and Distributed most of that 80 percent of
That went to the retail users eighty Percent of whatever we collected Celsius Next to you are benefiting because we Are lending that collateral you gave us Let me tell you about Alex rochinski This guy knew how to repeat the same Lines over and over and over again he Knew the points to hammer he knew the Talking points probably the iron Triangle where no matter what question You get asked you bring it back to one Of three main points and he did such a Good job of that repetition uh really Brainwashing people and really selling The deal contributing 80 percent of that Income with all the the other Celsius It's a win-win-win Celsius also said That in addition to making high yield They were extremely conservative they Told customers that there was collateral Backing up all their loans in case of a Disaster and the key thing to understand Here is that this secured loan with Collateral is much less risky than Unsecured loans where there is no Collateral and ultimately Celsius said Because of this A Bank Run wouldn't Affect them and these promises of safety And collateralization were key to people Actually putting their money in with Celsius Uh I really disagree with you here Coffee though I I gotta say I I think That that's wrong I I don't think most
People looked and most people cared I I Think the collateral lines versus Uncollateralized argument I think all People did was they looked on the Website and they saw that they could put Stable coins or Bitcoin or ethereum onto A platform and they just looked at the Percent it's at 8.8 percent and this is The thing about crypto in crypto the Gains are already so unbelievable that Making 8.8 sounds super believable Um and so I don't think a lot of people Really investigate what was going on on The back end I'm embarrassed I didn't I Didn't uh I trusted Alex and I trusted The platform I knew people that worked There and I thought they were good and Those people were good people Um a lot of the Celsius employees got Totally screwed by buyouts they've got Money left all over that platform that They can't pull off they took their Bonuses in cell token for years they had Equity in the company to potentially one Day cash out and make a lot of money It's all worthless now the only thing They can get back is some of the money That they left on the funds hopefully uh Depending on what happens with the Bankruptcy but I don't think the Collateralized versus uncoateralized Loan was the main selling point I think It was a robust platform that lots of Features it had great user interface it
Had a a seemingly great spokesperson Great reputation and I think people just Went with it I remember when I went and Did the iced coffee podcast with Um uh Graham Stefan he was so obsessed With getting yield on stable coins from Block fight he like couldn't even Believe it but even you know some of Those traditional Financial uh YouTubers Were taken by Celsius and by block fi And other types of uh you know these Platforms uh you know FTX obviously and Involved there as well so I think the Lesson that we all should have learned From this is that You can't take something at face value From one of these platforms if you can't Figure out exactly how they're Generating the income then you can't Make a decision on whether it's safe or Not the examiner details not only Systemic lying a ponzi-like scheme but Also tells us what I think constitutes Fraud according to the report Celsius Did not distribute up to 80 percent of Its revenues to its customers because it Had little to no profits to even Distribute Celsius also made no efforts To set its reward rates based on its Yield and according to the report Celsius consistently set its reward Rates based on what they perceived was Necessary to beat the competition Exactly I think there's a great Point
Here now I I don't put a lot of stock Into this report it is important to note Here and I don't know if coffees will Say this or if he says this in the video But where they said it was a ponzi-like Scheme that was actually a Celsius Employee not under oath talking about What they thought was going on Um so that's not The Examiner did not Make that call that it was a ponzi-like Scheme that's a very important Difference to note there but this point Here Celsius consistently sets reward Rates based on what was perceived to Beat the competition defy summer 2020. Prices are skyrocketing money is Everywhere yield farming is going crazy And Celsius is making money hand over Fist and they lose focus of what their Company was supposed to be about and it Becomes about beating the competition And beating the amount of money that They made the month before well as the Market would turn down They would have to consistently up their Risk gamble more to try to get the same Returns which led to a lot of bad Decisions and for most of celsius's Existence the rewards it paid exceeded By substantial amounts the revenues Celsius could earn the whole idea that We're paying 80 percent of what we make Was a total fabrication Celsius just Wanted more customers but eventually
When you have billions of dollars in Assets you have to pay rewards based on That and the Celsius team realized they Had a problem now that's a general Statement the Celsius team there were People that tells you that no idea what Was going on there were people who tells Us that knew very well what was going on So the Celsius team is like a real Generalized statement here I I would uh You know let's name names on who knew That's what I want to do machinski quote Overrode their recommendations and Refused to do so one example of this was When Jason Perman a Celsius executive Recalled mashinski saying that Celsius Could not cut its reward rates because Of his belief that our customers will Leave us and that quote our investors Didn't invest in us to shrink they Invested in us to double they realized They were stuck with the other strategy Now this is very common in these crypto Insolvencies whether it was Sam or Whether it was do Quan or whether it was Um Stephen Ehrlich or whether it was Alex machinski they were all warned that There were problems in their plan and They were too narcissistic to listen to Those warnings and heed them they just Wanted to keep pushing forward trying to Raise what they were able to make with Their assets by employing riskier Investment strategies to try to get
Closer to profitability they lied about This too oshinsky told the financial Times in June 2021 this from a risk Standpoint we are probably one of the Least risky businesses that Regulators Worldwide have ever seen You can't make that stuff up you cannot Make that up This is absolutely ridiculous around the Time he was saying this Celsius was over A half a billion dollars under water on Their liabilities by the end of the year 2021 Celsius would owe a billion dollars That they did not have 1.2 billion I Think is exactly what it was it was they Had four point Two billion dollars worth of assets They're supposed to have 5.4 I think That was a number but I think it was 1.2 Billion when they froze things but Anyways what I would say if you were Coming and my client is look all this Lying and losing money Standard fake it till you make it stuff They could have become profitable Eventually Okay here's the thing this part in this Video is awful and here's why and no Offense coffee is a lot I mean Do Your Own Thing If you like this you know what You're doing here it must be working for You but what I would say is the point That is being made in this conversation Is so important to the entire crypto
Ecosystem and I feel like it's very Distracting watching it coming from a Robot in this scene I think this point Would have been made a lot better Um you know just in the standard way the Video you know his videos are usually Done because this almost makes it seem Like it's supposed to be entertaining And this is maybe the most important Point of the whole video I want to go Back to the point we're talking about Fake it until you make it that's the Important point I want to talk about Basically A lot of these crypto companies they Just figured that as long as Bitcoin Could stay above a certain number and Head back in the right direction all of Their insolvency problems would go away So think about this a 50 drop from 70 000 is 35 000 a 50 drop from a hundred Thousand is fifty thousand dollars so The point being a standard bear Market Drop for Bitcoin is 80 to 85 percent Following 85 percent from seventy Thousand dollars Is much further than these platforms Thought Bitcoin was going to fall if it Had 100K they were prepared for that Drawdown but it didn't so when it saw The 82 drawdown is what I think we Peaked at these platforms were not ready For that and they thought if they could Just get through those times if they
Could pump coins if they could fake it Till they make it eventually Bitcoin Would go back up and they would be able To basically right their wrongs and Nobody would know that they actually Were insolvent so there's a very great Point about faking it till you make it And that's why all these platforms got Exposed around the same time so when Bitcoin was hitting around 17 18 000 the Temperature in the room was getting Really hot for these platforms And one by one they went bust as much as It pains me to say this I think you Might be right let me see what I can do If I'm going to demonstrate fraud I need To get to the heart of Celsius and That's what I found out about the Flywheel the flywheel was Central to Celsius's plan to become profitable Celsius was not just a crypto platform They also had a crypto token called cell And they controlled the vast majority of It up to 95 so if the price of cell went Up theoretically the balance sheet of Celsius would also go up and they could Sustain these insane reward rates However in order to do so they needed People to actually want cell tokens same Thing as ftt and FTX they did the exact Same thing they had multiple flywheel Tokens so the flywheel was machinsky's Plan to do that to create a positive Feedback loop and the way they did this
Was set up cell token like a Rewards Program where you could earn bonus Interest if you held a certain amount of Sell on their website they described This process as a self-sustaining Ecosystem where users would buy sell Earn more yield get more crypto collect Interest earn more yield lend more coins Collect more interest and buy more sell Tokens in 2022 their coin deployment Specialist described their practices of Buying up sell and using customer coins As very ponzi-like this ladies and Gentlemen is the core story not merely Lying it's a story of using customer Funds to buy out your Executives and Manipulate your own cryptocurrency so You can sell for a higher price now I Just want to reiterate here again the Ponzi-like phraseology there is from The the employee not from the examiner The the question is Was this intentional fraud in my opinion It's got to be intentional fraud there's Got to be intent there Um there had to be willful lying and the Problem with Alex machinski is that he's A narcissist And I don't know if he thought he was Lying so there were certain times where Obviously he lied there were things he Lied about he knew Um but back to the fake it till you make It thing I think he really thought he
Could hold the entire thing together and It didn't matter what they were doing Buying and selling the cell token and You know paying out uh employees with Worthless sell tokens while the Executives were making money because Overall everybody was going to make Money everyone was going to make yield Because he was just living in the Delusion of grandeur Um that he had propped up in his brain Still living The Glory Days and he just Couldn't get out of that mindset of it's Just so easy we're just going to make Money all the time crypto goes up Forever Um and I don't even know if he realized That they had become worse than a bank And I'm not trying to absolve him of uh Of guilt here I certainly think that There are things that occurred within Celsius that will be able to be pointed To as absolute fraud and criminal Activity I'm just saying I don't know if This one thing that they're talking About here with the cell token is going To be the thing that gets it over the Finish line if you want to look at Something that can get over the Finish Line look at the Bitcoin that was taken From Simon Dixon I think it was like 288 Bitcoin taken from his account the day Before the pause and added to the Celsius balance sheet so there's a lot
Of criminal activity that was going on But I'm not sure that this one is the Smoking Gun hundreds of thousands of Lives were ruined and this in my view is Where Celsius crossed the bright red Line rather than just being an Incompetent lender they had created a Scheme with cell token where new users Funds had to be used to prop up cell Token value which benefited their Executives it also created a need to use New customer funds to pay out old Customers because of their impossibly High rates of rewards to fuel growth It's very important to point out here That this is a very common thing that You see in crypto I'm not saying it's Right certainly it's wrong and we need To get rid of this kind of tokenomics Within corporations they're involved in Crypto but he wasn't alone in this kind Of scheme there were a lot of other Exchanges and platforms that were using The same precedent you know I'd say Voyager was probably doing a lot of Similar things here as well obviously FTX was doing similar things as well I Think the problem is within the Bad Actors in The crypto space that think That this is okay to do we've got to Clean out the tokonomics around stuff Like this people have to understand that The way that things have been done via Precedent in crypto when it comes to
Centralized entities has been wrong it Has been immoral it has been unethical And we know that now so there has to be A higher standard in crypto for all These platforms but once again I want to Get into the the point is that the Criminal activity that's the Smoking Gun And I'm going to say no on that one uh As well Securities violations Potentially however southern district of New York criminal go to prison federal Crime I don't know if that's uh the one I I've already told you what I think They should go after which would be Absolutely stealing funds from a Customer to add to the company balance Sheet they're trying to reopen their Doors they have a new plan to basically Distribute whatever's left back to the Holders and lawyers I can't go too much Into the details of this plan but if You're a creditor you can visit this Page to learn more it's not a perfect Plan by any means but I'm not sure I Have any better ideas of what to do with Such a bad situation well I have an idea How about you Come out stand up for the little guy the Retail investor who withdrew their money Because they saw some dangerous sketchy Things on the platform and now the the UCC and Whiting case are trying to do a Retail callback and take funds back from The customers that they withdrew and are
In their bank accounts I believe copy Zilla would agree That insiders need to be punished people That took money off of The Exchange Because they had information the average Person on the site did not have secret You know Smoking Gun tangible proof of Insolvency They should have to give part of their Money back Insider clawback Alex machine Because you have to give all his money Back he took uh really from day one on The platform however Joe Blow who put his life savings on There of a hundred thousand dollars and Got sketched out and pulled the money Off that's the little guy that's who Copies was supposed to be standing up For so I would really encourage him to Come out with a strong message against Those retail clawbacks because as he is Constantly going at Bad actors There's no worse actors than the the White and case law firm here Um the the way the traditional system The rig system works where the lawyers Are getting all of the money pursuing The money from the little guy and it's a Corrupt system and I would hope that he Would come out and uh make a statement And be against those retail clawbacks Yeah especially the people for a hundred Thousand dollars to two hundred and Fifty thousand dollars right those
People are going to get crushed by this They don't have the money to get high Power lawyers to fight the retail Compacts and they're just in a really Bad situation I can fight them I can Fight club acts I'm not that concerned About it personally I'm more concerned About the person that's going to get Harmed by those so I would really Encourage you guys if you are a fan of Coffee Zilla to go check them out on the Joe Rogan podcast uh when that comes out And also make sure to urge him to make a Statement about the clawbacks because He's got a big powerful voice right now And uh that's something that we Definitely need to help fight for the Little guy here in crypto all right guys Well I guess that's it I guess we saw The video we were reacted we did not do The robot I hope coffee Zilla didn't do The robot that's all I gotta be blessed
