In the summer of DeFi in 2020 and the bull market in 2021, there is a giant whale address 0xb1 that once dominated the DeFi industry, and once reaped $200,000 to $400,000 in mining revenue every day. Golden Finance previously reported on the anonymous team behind this address. . However, after May 2021, this address gradually withdrew from DeFi activities, and the assets under management dropped sharply. At present, this address only has 0.02 ETH, and other token assets total $110,000.
People have been speculating about who this giant whale really is. On July 8, 2022, the 0xb1 Twitter account disclosed the actual person behind the management of this address and the source of its assets – Celsius.
Below are the tweets posted by the 0xb1 twitter account.
I’m Jason Stone, and from August 2020 to April 2021, I lead a talented group of people managing 0xb1 addresses.
Before leading 0xb1, I spent years creating yield optimization strategies in the PoS space. In 2019, I started a company called KeyFi to write MPC staking software and strategies.
After discussions with Celsius in mid-2020, Celsius began acquiring KeyFi assets and teams. I have since pivoted KeyFi to staking and deploying DeFi strategies for Celsius.
August 2020 Created 0xb1 along with other addresses to send Celsius’ customer deposits to us for management.
Soon after, Celsius shared the private key of the address with us, and over the following months transferred hundreds of millions of dollars in customer deposits to us for investment. When Celsius and KeyFi parted ways, we managed nearly $2 billion in assets .
Celsius’ risk management team uses HedgeGuard and DeBank to monitor our investment strategy and performance .
They assured me that, as part of this monitoring, their trading team adequately hedged any potential impermanent losses from our activity in the liquidity pool. They also assured me that they have risk management and hedging against fluctuations in the token price.
But in late February 2021, we found out that Celsius lied to us. They did not hedge our activity, nor did they hedge against the volatility of crypto asset prices. The entire company’s portfolio is streaking through the market .
After seeing these (and other) major problems in the company’s operations, we notified Celsius that we wished to terminate our relationship. That was March 2021. We told Celsius that we would be working with them to unwind our various positions over the next few months.
In April 2021, the value of our assets under management increased by more than $800 million.
But Celsius suffered impermanent losses when we closed out DeFi positions. At first, they saw impermanent loss as evidence of KeyFi theft and accused me of being a thief.
They later accepted impermanent loss for what it was, but claimed I was responsible for it. They completely ignore the fact that they are fully aware of all the trading strategies deployed by KeyFi and committed to hedging that exact risk.
I have been trying to settle my dispute with Celsius quietly for over a year. According to Celsius’ contract with KeyFi, they owe KeyFi a large sum of money. It’s very reasonable that we try to resolve this with them. While we are reasonable and because I think there is a huge hole in their balance sheet, Celsius refuses to admit the truth or their failures in risk management and accounting. They tried to shift the blame onto me.
Given public speculation about Celsius’ solvency, and my observations about Celsius and its reluctance to admit the truth, I think it’s wise to finally get the facts straight. I have filed legal action against Celsius to settle this issue once and for all. You can find a copy of this document in New York State Court. I hope this sheds light on not only the history of 0xb1, but also how Celsius has performed in general over the past few years.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/0xb1-behind-the-scenes-identity-disclosure-once-managed-celsius-assets/
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