Customers trapped in the crypto lending crisis at Celsius Networks are appealing for their deposits to get back.
The judge who oversees the multi-billion dollar bankruptcy of the company has received hundreds of letters. Such letters are filled full of anger, shame, desperations and regrets.
These letters come from all over the world and recount the tragic loss of customer funds following Celsius’s freeze withdrawals.
Most letters mentioned that the CEO’s AMA chats (Ask Mashinsky Anything), online chats, were the key to their trust and faith in him and the platform. The platform was safe and stable up until the day it frozen funds.
A customer, who disclosed having $32,000 in crypto funds deposited in the Celsius platform, wrote to the judge: “Right up until the end, the retail investor received assurance.”
Celsius frozen customer funds on June 12 to make it easier for itself to fulfill its withdrawal obligations. The firm sent a message to clients with the news.
“By the time I finished the e-mail, I had collapsed onto the floor with my head in my hands and I fought back tears,” a man who had about $50,000 in assets with Celsius narrated in his letter.
Another man stated that he borrowed $525,000 from the government to buy Celsius. He also revealed that he considered suicide.
Many of the customers who were most hurt by the incident admitted that they had thought about suicide.
Others reported feeling overwhelmed, sleepless, and embarrassed that they had put their retirement savings and college funds on a platform that was more risky than they ever imagined.
Celsius was a private, unregulated company and did not have to be disclosed. Many clients have lost hope, including an 84 year-old woman who saved $30,000 on Celsius. Now, the bankruptcy proceedings are threatening their hopes.
How Celsius attracted Investors
Fears that interest rate rises will end the era low-interest money have caused crypto assets to be hard hit. The world’s most valuable digital asset BitcoinThis year’s high was a record 56% lower than this year’s.
Many crypto companies like Voyager Digital (Voyager Digital), Voyager Capital and Celsius Network have declared bankruptcy or had to seek capital infusions.
The collapse in the greater crypto ecosystem means that customers no longer receive double-digit annual returns from Celsius or other crypto firms.
As a way to attract new customers, Celsius promised huge yields. This was part of the reason Celsius fell.
Celsius had stopped all withdrawals due to market difficulties three weeks ago, but the platform advertised its annual returns of almost 19% each week on its website.
This promise helped to quickly attract new customers. Celsius claimed it had 1.7million customers as of June.
Source: Shutterstock
