Clients of Bankrupt Cryptocurrency Platform Ask for Their Money Back

The Irishman is about to lose his farm. American with suicidal thoughts. 84-year-old widow who lost all her savings: people caught in the bankruptcy of an investment platform in cryptocurrencies Celsius They ask for their money back.

Hundreds of letters filled with anger, shame, despair and regret flooded the office of the judge overseeing the multi-million dollar bankruptcy.

“I knew there were risks,” said the client, who did not sign his letter. “Seems like it’s worth the risk.”

Celsius and its CEO Alex Mashinsky introduced the platform as a safe place for people to contribute cryptocurrencies in exchange for high interest while the firm borrowed and invested those deposits.

But since the cost of a highly volatile cryptocurrencies – Bitcoin alone has lost 60% of its value since November – the firm was in big trouble until it froze withdrawals in mid-June.

The company owes $4.7 billion to its users, according to a court document released this month, and it’s not yet clear how the case will turn out.

Letters published in the online court archive come from all over the world and talk about the tragic consequences of freezing users’ money.

“From that hard-working single mother in Texas dealing with delinquent bills to the teacher in India who invested all her savings in Celsius“I think I can speak for most of us when I say I feel betrayed, ashamed, depressed, angry,” one client wrote, signing his letter as

Although the maps differ in the level of knowledge of the world cryptocurrencies – from self-proclaimed newcomers to hardcore bettors – and the monetary implications range from a few dollars to seven figures, almost everyone agrees on one point.

“I am a regular customer Celsius since 2019 and I feel completely attached to Alex Mashinsky,” wrote one of the clients. Alex talked about how Celsius It was safer than banks.

Many letters point to the AMA (Ask Mashinsky Anything) online chats offered by the CEO as the main reason for their trust in him and in the platform, which is presented as stable for several days before the user funds data freeze.

Repeated warranties before the accident

“Celsius has one of the best risk mitigation teams in the world. Our security team and infrastructure are second to none,” the firm wrote June 7.

We have overcome crises cryptocurrencies before (this is the fourth one!). Celsius He’s prepared.”

The message also stated that the company had sufficient reserves to pay its obligations and that withdrawals would proceed as usual.

One client who claimed to have $32,000 in cryptocurrencies locked in Celsiuswrote to the judge that “almost to the end, the retail investor received guarantees.”

But that quickly changed, and on June 12 Celsius announced the freeze: “Today we decide to put Celsius in a better position to fulfill their pension obligations over time.

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

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

The most affected clients, including a man who said he deposited $525,000 he received from a government loan in CelsiusThey claim to have thought about suicide.

Others report high levels of stress, lack of sleep, and deep shame at having invested their savings or their children’s college money on a platform that was far more risky than they thought.

“As a private non-regulated company, Celsius is not subject to any obligation of disclosure”, concludes Washington Post.

Celsius did not respond to a request for information about customer letters.

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

“It’s not uncommon for people to come out of something like this from scratch,” says banking and finance expert Don Cocker.

“Of course, I feel sorry for everyone who loses such investments, but … they must be aware of the risk,” he added. (AFP)

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