December 4, 2022

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Customers of a bankrupt cryptocurrency platform are asking for their money back

An Irishman is about to lose his farm. Suicidal American. 84-Year-Old Widow Who Lost Her Life Savings: People Caught in Investment Platform Bankruptcy Cryptocurrencies Celsius They ask for their money back.

The office of the judge overseeing the multimillion-dollar bankruptcy has been flooded with hundreds of letters filled with anger, shame, frustration and regret.

“I know there are risks,” said the client, who did not sign his letter. “It seemed like a risk to take.”

Celsius And its CEO, Alex Mashinsky, offered the platform as a safe place where people could make their deposits Cryptocurrencies In return for higher interest, the company lent out and invested those deposits.

But as a very volatile value Cryptocurrencies Bitcoin alone has lost 60% of its value since November—the company faced more problems, Until it freezes withdrawals in mid-June.

According to a court document released this month, the company owes its users $4.7 billion, and it’s unclear how the matter will play out.

The letters, published in the online judicial archive, come from around the world and tell of the tragic consequences of freezing users’ money.

“From a hard-working single mother in Texas dealing with overdue bills to a teacher in India, she added all her savings. CelsiusI think I can speak for most of us when I say that I feel feelings of betrayal, shame, depression, anger,” wrote one of the clients who signed his letter.

The cards differ in the level of knowledge of the world Cryptocurrencies — from self-confessed conundrums to surefire bets — and monetary stakes ranging from a few dollars to seven figures, almost everyone agrees on an opinion.

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“I was a loyal customer Celsius “Feeling completely connected with Alex Mashinsky since 2019,” wrote one customer. “Alex was talking about how. Celsius It was safer than banks.

Several letters pointed to the CEO’s AMA (Ask Mashinsky Anything) online chats as the main reason for their trust in him and the platform, which was shown to be stable until days before the data freeze.

Repetitive Warranties Before Accident

Celsius One of the best risk reduction groups in the world. Our security team and infrastructure are second to none,” the company wrote on June 7.

“We have overcome crises Cryptocurrencies Before (this is the fourth!). Celsius He is ready”.

The message stated that the company has sufficient reserves to meet its obligations and withdrawals will be processed normally.

A customer said he had $32,000 Cryptocurrencies is locked Celsius“Until the end, the retail investor received guarantees,” he wrote to the judge.

But that soon changed and on June 12, Celsius Declared freeze: “Today we take this decision Celsius Over time, they are in a better position to honor their pension obligations.

Some customers got the news in a message from the company.

“When I finished reading the e-mail, I collapsed on the floor with my head in my hands and burst into tears,” wrote one man, who owns about $50,000 in assets. Celsius.

The worst hit customers, including one who said he deposited $525,000 he got from a government loan CelsiusThey say that they thought of committing suicide.

Others experience high levels of stress, lack of sleep and deep shame for depositing their life savings or their children’s college money into a platform that is far more risky than they thought.

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“As a private, unregulated corporation, Celsius not subject to any disclosure obligation”, in short The Washington Post.

Celsius The client did not respond to a request for information about the letters.

For people like the 84-year-old woman who only had about $30,000 in savings invested in cryptocurrency a month ago, there is hope in the bankruptcy process.

“It’s not unusual for people to come out of something like this with zero,” says Dan Coker, a banking and finance expert.

“I feel sorry for anyone who loses such an investment, but … they should be aware of the risk,” he added. (AFP)

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