Crypto lender Celsius files for bankruptcy

[Martin Everson]

https://edition.cnn.com/2022/07/14/business/celsius-bankruptcy/index.html

 

[RealDude]

The founders of bankrupt crypto hedge fund Three Arrows Capital are reportedly not cooperating with liquidators and their whereabouts are unknown​

https://www.yahoo.com/entertainment/founders-bankrupt-crypto-hedge-fund-190126380.html

 

[Martin Everson]

Seems other crypto lenders like Voyager Digital also went bankrupt and Vauld also has run into trouble freezing clients assets I believe.​

 

[RealDude]

It seems to be a big scam.

 

[Martin Everson]

It seems to be a big scam.

I kind of spelled it out to people in thread below back in 2019. If you see Celsius offering high risk junk rates then what could possible go wrong . Hopefully nobody here is affected.

https://www.offshorecorptalk.com/threads/where-to-park-cash-cheaply.27654/post-114658

 

[polonieth]

Not your keys, not your coins.

I don't understand why people bothered with this stuff, going all in with their stack to earn 7% interest.

 

[JackAlabama]

Not your keys, not your coins.

I don't understand why people bothered with this stuff, going all in with their stack to earn 7% interest.

Yah, good they are all gone. Now with a clean slate, the space can move forward.
For btc, they offered 1% lol after 3btc. So by far not worth the risk.

 

[backpacker]

It seems to be a big scam.

Indeed, and the signs were written on the wall long before.

The sad thing: It will als destroy the few serious player, which means the entire crypto-world is dead for the foreseeable future.
Private investors will flee (if they still can) and never return. Investment fund managers/Wealth Management will not invest and is forced to sell because the risk department is now in charge.

This is just the beginning of an endless downwards spiral.

 

[polonieth]

Indeed, and the signs were written on the wall long before.

The sad thing: It will als destroy the few serious player, which means the entire crypto-world is dead for the foreseeable future.
Private investors will flee (if they still can) and never return. Investment fund managers/Wealth Management will not invest and is forced to sell because the risk department is now in charge.

This is just the beginning of an endless downwards spiral.

Who are the serious players?

The idea of crypto is to remove the middleman. If you don't control the keys, they are not your coins and you are open to being scammed at any given moment.

Yah, good they are all gone. Now with a clean slate, the space can move forward.
For btc, they offered 1% lol after 3btc. So by far not worth the risk.

Yup, it's like picking up pennies in front of a steam roller. I never touched any of them - celsius, blockfi, nexo etc. Garbage.

 

[backpacker]

Who are the serious players?

Certain projects.

he idea of crypto is to remove the middleman. If you don't control the keys, they are not your coins and you are open to being scammed at any given moment.

That was the idea.
Unfortunately, most crypto enthusiasts do not understand that the wider population (who is for a good part responsible for the previous bubble) only wants to make gains. Gains in real money, i.e. fiat. Because only in fiat they calculate and only in fiat they can pay their bills and groceries.

 

[polonieth]

Certain projects.


That was the idea.
Unfortunately, most crypto enthusiasts do not understand that the wider population (who is for a good part responsible for the previous bubble) only wants to make gains. Gains in real money, i.e. fiat. Because only in fiat they calculate and only in fiat they can pay their bills and groceries.

Which projects?

If they have admin keys or control your keys - they can't be serious.

 

[troubled soul]

Soul of the Bitcoin, to remove middleman and avoid this type of bankruptcy of middle man. I am bitcoin believer for P2P . I am very happy that this type of middle went out of the business. They are literally killing the Bitcoin soul. This crypto winter will eliminate bogus Player from the Market. In long term view , this development is good in crypto world . It is blessing in disguise..

 

[Martin Everson]

Genesis Crypto Lender Loses “Hundreds Of Millions” In 3AC And Babel Collapses​

https://www.business2community.com/...-millions-in-3ac-and-babel-collapses-02518286

 

[troubled soul]

Feel sorry for amature investors who lost their "real money" ..


Some lessons you have to learn very hardway

 

[Martin Everson]

People lose life savings as major crypto lender Celsius files for bankruptcy​

https://www.msn.com/en-us/money/mar...ender-celsius-files-for-bankruptcy/ar-AAZycS5

 

[CyprusLawyer101]

Soul of the Bitcoin, to remove middleman and avoid this type of bankruptcy of middle man. I am bitcoin believer for P2P . I am very happy that this type of middle went out of the business. They are literally killing the Bitcoin soul. This crypto winter will eliminate bogus Player from the Market. In long term view , this development is good in crypto world . It is blessing in disguise..

I agree with this point of view

 

[GeneralGogol]

1. If you don't know how the yield is generated, you are the yield
2. Not your keys, not your coins.

Amazing how many idiots fall for these things. There is no such thing as risk-free 10% APY in a zero interest-rate world.

 

[Martin Everson]

Zipmex joins growing list of crypto exchanges to block withdrawals​

https://www.msn.com/en-us/news/us/z...pto-exchanges-to-block-withdrawals/ar-AAZPGFn

 

[Jerry1911]

Ok but Zipmex is totally irrelevant. It's on the 207th place here: Top Cryptocurrency Exchanges Ranked By Volume | CoinMarketCap

 

[Martin Everson]

Celsius customers write pleas to bankruptcy court to get crypto back: ‘This is an emergency situation, simply to keep a roof over my family and food on their table.’​

https://www.msn.com/en-us/news/othe...-my-family-and-food-on-their-table/ar-AAZXCwj
---- quote start

In bankruptcy filings, Celsius noted that its customers transferred ownership of their crypto to the company, a move experts say could potentially hint at its plans to request its users be treated as unsecured creditors in the bankruptcy process.

“I watched every single AMA each Friday since sign-up, and week in and week out Alex would talk about how Celsius is safer than banks because they supposedly don’t rehypothecate and use fractional reserve lending like the banks do,” Stephen Richardson wrote in a letter to the court. He described himself as a Celsius customer since 2019, with more than six figures worth of crypto on the platform.

“I am embarrassed, ashamed, and disgusted by the utter lack of transparency from a company that claims to be an ‘open book’ and highly transparent compared to any and all banks,” Richardson wrote.

---- quote end


People never learn. Reminds me of Euro Pacific bank and same buzz words used. People just fail to use common sense when it comes to anything finance.