Celsius customers plead for their refunds with letters to judge watch company’s multi-billion dollar bankruptcy

An Irishman is in danger of losing his farm. An American is contemplating suicide. An 84-year-old widow’s lost savings: People caught in a Celsius crypto lender crisis are begging for their money back.

Hundreds of letters were sent to the judge overseeing the company’s billion-dollar bankruptcy, and they were laden with anger, shame, despair, and often regret.

“I know there are risks,” said one customer whose letter was not signed. “That seems like a worthwhile risk.”

Poison and its CEO Alex Mashinsky billed the platform as a safe place for people to send money electronic money in exchange for high interest rates, while the company lends and invests those deposits.

But because of the value of strong volatility electronic money decline – Bitcoin alone has dropped more than 60% since November – the company faced growing troubles until it froze withdrawals in mid-June.

The company owes $4.7 billion (about Rs 37,205 crore) to its users, according to a court filing earlier this month, and the outcome is unclear.

The letters – posted to a public online court – were sent from around the world and recounted the tragic results of users’ funds being frozen.

“From a hardworking single mom in Texas struggling with overdue bills, to a teacher in India with all her hard-earned money deposited in degrees Celsius – I believe I can speak for myself. for most of us to say that I feel betrayed, embarrassed, depressed, angry,” one customer signed their EL letter.

While the letters vary in their level of sophistication about the crypto world – from self-confessed novices to almighty evangelists – and monetary impact from a few hundred dollars to numbers seven-figure money, nearly all agree on one thing.

“I have been a loyal Celsius customer since 2019 and feel completely deceived by Alex Mashinsky,” wrote one customer AFP did not identify to protect his privacy. “Alex will talk about how degrees Celsius are safer than banks.”

Multiple letters point to the CEO’s AMA (Ask Mashinsky Anything) online chats as key to them trusting him and the platform, which presented itself as stable until days before it froze funds of the user.

Guaranteed to be repeated before falling

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

“We have weathered previous crypto downturns (this is our fourth!). Celsius is prepared,” the company wrote.

The message also indicates that the company has reserves to pay its obligations and that withdrawals are being processed as usual.

One customer, who reported having $32,000 (approximately Rs 25,33,700) in crypto locked to degrees Celsius, noted the impact.

“Up to the end, the retail investor has received assurance,” the client wrote to the judge.

But that changed quickly, and on June 12, Celsius announced the freeze: “We take this action today to put Celsius in a better position to honor, over time, its revocation obligations.”

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

A man with a property of degrees C.

Customers who said they were hardest hit include one man who said he put down the $525,000 (about Rs 4,15,69,700) he received from a government loan in degrees Celsius. revealed that they had considered suicide.

Others said heavy stress, lack of sleep, and deep shame for having placed their retirement savings or their children’s college money on a much riskier foundation than what they know.

“As an unregulated private company, Celsius does not have any disclosure requirements,” that’s how the Washington Post summed up the situation.

Celsius did not respond to a request for comment on the customer letters.

For the likes of an 84-year-old woman, who has only about $30,000 (about Rs 23,75,100) in crypto savings above degrees Celsius for a month, their hope lies in bankruptcy proceedings.

“It’s not uncommon for people to come out of something like this with zeros,” said Don Coker, a banking and finance expert.

“Obviously I feel sorry for anyone losing an investment like this, but it’s just that they need to be aware of the risks,” he said.