Celsius Bankruptcy Victim Writes Letter to Court: Only for Home and Food for My Family

Cryptoharian – Several customers of crypto lender Celsius Network, which filed for bankruptcy earlier this month have written to the Bankruptcy Court in the Southern District of New York. They hope to get back their lost funds during this Celsius bankruptcy.

As the digital asset collapsed, Celsius, which said it had more than 1.7 million users in June, had halted the withdrawal process since June 12.

A crypto lender or crypto lender is a company that allows consumers to buy, borrow or deposit their cryptocurrency and earn up to 18.6% interest per year.

Most large lenders’ savings accounts are denominated in US dollars, offering annual yield percentages close to 1% or less, according to Bankrate.

According to Marketwatch.com, Celsius has about $1.2 billion in debt on its balance sheet. They have a total obligation to pay $5.5 billion by July 13, including more than $4.7 billion owed to Celsius users. The company itself is known to have total assets of US $ 4.3 billion.

In the bankruptcy filing, Celsius noted that its customers transferred their crypto holdings to the company. This is seen as a move that experts say has the potential to hint at its plans to have its users treated as unsecured creditors in bankruptcy proceedings.

In letters to the court, many of Celsius’ customers said they felt cheated by the company and by Alex Mashinsky, who is its chief executive.

“Every Friday on YouTube’s AMA (Ask Me Anything), Celsius keeps telling people they’re better than the bank. Apart from that, it is also safer with better returns. They told us they had billions in liquid cash,” wrote Brian Kasper, one of the platform’s customers.

Besides Kasper, Stephen Richardson also wrote in his letter that he watched every AMA every Friday since signing up. He claims to be a Celsius customer since 2019, with more than six-figure worth of crypto on the platform.

“Week after week, Alex would talk about how Celsius is safer than banks. they shouldn’t do rehypothecate and using fractional reserve loans as banks do to courts,” he wrote.

He admitted that he was embarrassed and disgusted by the lack of transparency of the company, which claimed to be open the book and very transparent compared to any and all banks.

Celsius himself is known to not reply to emails asking for comment. Mashinsky also did not immediately respond to a request for comment.

A social media thread on Reddit appeared about a week ago to show how Celsius clients can contact bankruptcy courts and trustees. It is not clear whether the posts have been the catalyst for individual letters to court.

Flori Ohm, a single mother of two daughters who will enter college next year, also wrote in the letter stating that she and her family were severely affected both financially and mentally by the bankruptcy and crypto lockout.

“I always check the app if my crypto is still there. I can’t focus on my work or sleep. I also support my parents and daughter alone. I fought hard (to make a living),” he wrote.

Stephen Bralver, another Celsius customer, said he had less than $1,000 left in his Wells Fargo checking account to support his family after Celsius froze all withdrawals. Bralver called for the release of its funds from Celsius.

“This is an EMERGENCY situation, just to keep a roof over my family and food on their table,” Bralver wrote.

Not only that, in a letter filed on July 21 by Sean Moran, a resident in Ireland wrote that he had lost his farm. In addition, his family is homeless due to Celsius’s bankruptcy.

“The family is distraught by my decision to trust Celsius and promise them a better future,” he said.

In a presentation posted by Celsius on its bankruptcy website, the company said it intends to give customers choice. The option is that the customer can recover cash at a discount or remain a ‘long’ cryptocurrency. [St]

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