Crypto

Cryptocurrencies: anger, shame, regret; clients of this desperate investment platform after its bankruptcy

An Irishman on the verge of losing his farm, an American with suicidal thoughts, an 84-year-old widow who lost all her savings: clients of the Celsius cryptocurrency investment platform are in despair. Since the company filed for bankruptcy in mid-July, hundreds of letters have come to court from former users filled with anger, shame, and often regret.

“I knew there were risks,” said a client who did not sign his statement, for example. “Looks like it was worth it.” Celsius was one of the most important players in the sector, lending money and rewarding deposits by playing in the land of banks without offering the same guarantees.

The platform offered interest rates of over 18% for savers and 0.1% for borrowers. In June, he had 1.7 million customers.

Celsius owes $4.7 billion to customers

But faced with the fall of the cryptocurrency (Bitcoin has lost over 60% since November), several companies have frozen withdrawals and/or filed for bankruptcy in the US. However, Celsius and his boss Alex Mashinsky assured that the platform is a safe place to store their cryptocurrencies. He now owes his clients $4.7 billion.

Their letters, available on the court’s public database, often deal with dramatic consequences, whether the losses are in the hundreds or millions of dollars. They come from all over the world, from inexperienced crypto enthusiasts to evangelists of these new assets. Almost all of them agree on one thing: their trust has been betrayed.

Victims hope that the bankruptcy court will help them get at least some of their money back. It may take years.

Source: 20 minutes

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