Topic: Crypto lender Celsius mulls possible restructuring amid financial woes (Read 3089 times)

Finally Celsius returned part of the money to my Coinbase account. I can confirm investors are being paid by the platform, as announced recently. Despite their support not replying in any moments, they considered the personal informations provided previously and returned 32,51% of my original portfolio. That was more or less the sum of money expected to be received, so no surprises here.

Now it seems we still have some participation on their mining business, so let's see what is going to happen next. I think the novel isn't totally over yet.



As you can see, part of the funds were paid in BTC and other part in ETH.

Has anyone with cryptocoins in Celsius begun receiving back those coins? According to this article Celsius has started to distribute $3 billion worth of coins and fiat. This is no small amount hehehe. I reckon this might also be one of the causes of the dump presently happening on the market. The depositors, after waiting for their coins to be returned, they will be very happy to dump them and send the fiat in their bank accounts where the money will be safe hehehehe.



Celsius Network has started to distribute $3 billion worth of cryptocurrency and fiat to its creditors after officially resolving its Chapter 11 bankruptcy, 18 months after it paused user withdrawals, the company said on Wednesday.

Read in full https://www.theblock.co/post/275461/celsius-network-starts-3-billion-payout-emerging-from-bankruptcy

No. It's necessary to match legal name and birth date. And later, your Coinbase account must match the same data you gave Celsius in order to be paid.



As you can see, this is the error message displayed when I access my Celsius account. However, this platform is so cunning, that they dare displaying an error message with the exact same legal name provided and legal name on the document, plus date of birth provided and on the document.

There is no error, neither a single letter misplaced.

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Well, the point is that customers didn't update and confirm their data because they weren't allowed to by Celsius. It's not customers' fault, because they have been in touch with the platform's support for months, without any replies from the other side. There are prints which can easily prove Celsius has neglected customers in order to not pay them. But you are right, I wouldn't count on the court, anyway.

So many customers have been waiting for a response from support for many months now, but nothing yet, i initially believed they were unresponsive because of the workload of so many customers they had to attend to, but now i think they may be doing this on purpose and they do not want some customers to update and confirm their data in order to be able to receive some of their money back when they start refunding customers.
I don't know for sure, but i don't think the court would interfere in this part of the case, they would probably work with and refund only the customers who were able to update and confirm their data and so are eligible.

I think the most important and sufficient thing should be matching email?

Is anyone else waiting to receive funds back from them? Did you manage to match all your account's informations with your documents, or did you manage to get a reply from their support?

I received an email today by Stretto saying all their applications (app and webstite) are going to be shut down around February 28, next month. However, many people can't get a reply from the support (for months already) to confirm if their data is correct in order to receive part of the funds back into Coinbase account. I fear once the app and website are shut down there won't be anything else to do, and then we won't be able to receive a single penny back.

Total lack of contact with support and sharing of consistent informations. We only have access to posts on that shitpool called "X" social media, where lots of people complain about the same issue of not having access to their personal accounts, being unable to update documents or for not being replied by support. In response, there are only random scammers telling them to send private messages to other random X's accounts who would hypothetically help them to recover their funds.

I think this act of omission from Celsius company should be addressed to the legal action's process. They are maliciously preventing customers from updating and confirming their data in order to not fulfill the court's decision.

And Stretto is just washing hands. I sent them a message and they replied this:



After that, no more replies from Stretto, while Celsius has never replied. There isn't anyone else to appeal to. Is the court also going to wash hands on this?

From what i read online, Celsius customers will own the stock of the mining company:
So many people are complaining about this on their social media platform X, many people can't even login to verify anything and their support is not responding. I can only imagine the situation of these people who have funds locked in Celsius since they filed for bankruptcy on July 14, 2022 and are only hoping for a small percentage to be refunded to them from what they lost.

Still waiting for updates... So far Celsius keeps sending emails asking users to update their accounts' profile informations with documents in order to be able to withdraw the money once they have the permission from the court.



The thing is, I've uploaded my documents, which exactly match the informations on my profile, but the platform presents an error, saying they don't match and that I have to re-upload them or contact support. Support doesn't reply. Another scam on the way?

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Funds will be paid to Coinbase account. ID from Celsius and Coinbase accounts must exactly match. Skipping every shenanigans from Celsius when calculating how much money investors will retrieve, it's concluded it will be possible to recover about 30%-33% of the original funds (my doubt is, in Bitcoin values, or in dollar price on the moment the thieves' scheme gone down?).

Part of the funds will be destined to a mining business. I'm not sure, however, if investors will have access to part of this mining business' profit.

A little bit of good news for all those that have money stuck at Celsius as that they plan to start repaying its customers by the end of 2023, if approved by court and regulators. It is planned to be only partial repayment though, but at this point I guess they will take anything (at least that's what my friends that hve money there tell me).

Source: https://cointelegraph.com/news/celsius-network-bankruptcy-newco-seeks-court-approval-confirmation-hearing

However, these good and honorable people from traditional finance want to maintain their good reputation and have a clean name because they are politically connected. They do not want to appear like they are the evil men who manipulated the destruction of an industry so they can takeover. Some of them might have a future in politics, their relatives might have a future in politics and their political connections are important them. They do not want to appear dirty to the public.

Similar to the Italian mafia, they like wearing suits and make it look to you that they are honorable people.

Former Celsius CEO Alex Mashinsky has been arrested today, along with SEC suing him and Celsius for securities fraud. About time I would say.

The government doesn't have to go through this kind of conspiracy, if it is a centralized service they can just push for regulation and try to control it indirectly, these crypto centralized services are doing very shady things and maybe they need to be well regulated.
Even if they didn't create their business to scam people, but just with the way it is run, in the long run people are going to be scammed, these services operate through a fractional reserve system, they don't keep the money of their customers, they use it to trade or gamble, the chances are high that someday they can be unlucky and lose it; and the domino effect follows.

I think it is exponentially more likely that they are just greedy scammers. More intelligent than you average "Enter your seed phrase on this website" phishing email type scammers, but greedy scammers all the same.

We saw it endlessly during the ICO craze. Any scammer with the ability to launch a useless ICO did just that, made a few million from the gullible, and then exit scammed and disappeared. It's a bit harder to do the same with a centralized exchange, but the gains are far greater. People like Mashinsky or SBF are exactly the type of people you can see launching their own ICO back in 2017 and promising that it is the next bitcoin killer or some other such bullshit.

Well, that's not really being skeptical but rather being conspiracy theorist and I am not big fan of those.
Talking about conspiracy theories, I also heard from some ppl saying that Bitcoin was created by government in order for people to slowly accept digial currencies so its easier for them to push CBDC. 

@Rikafip. If they pay hehehehe.

The skeptical is now thinking that the people who founded and created these failed Cefi lending services are really working for the government to make the cryptospace appear that it is full of scamming hustlers.

The reason for this is to make the cryptospace community divided and make it look that it is in need of a takeover by the people behind the traditional financial companies.

For all those that have money stuck at Celsius, you might wanna know that you will be able to swao your altcoins to bitcoin and ethereum as their plan is pay the debtors in those two cryptocurrencies.

https://www.wsj.com/articles/crypto-lender-celsius-names-fahrenheit-as-winning-chapter-11-bidder-40c3c3e5

An update to the Celsius saga -- it appears that Celsius is going to distribute it's crypto holdings to its customers, and will own nearly all of the new company that will exit Chapter 11 bankruptcy. A company called "Fahrenheit" will manage the illiquid holdings of Celsius.

From what I can tell from the article, it appears that Celsius is going to be effectively liquidated, and the assets that could not be easily liquidated will be managed by Fahrenheit for the benefit of Celsius customers.

I think you are making a couple of flawed assumptions.

In Bankruptcy, Celsius will not be able to purchase their own debt, and the tokens in question would represent debt that celsius owes. Upon exiting bankruptcy, all debt will either need to be converted to equity, converted to new debt, or be repaid at a fraction (potentially 100%) of what is owed to debt holders.

While I agree that celsius debt tokens would likely initially trade for less than face value, I don't think it is realistic for Celsius to be able to repurchase large amounts of their debt at ridiculous discounts (that would not otherwise be possible) due to the issuance of debt tokens. Ignoring the above constraints, if Celsius were to start buying up their debt tokens in mass, the laws of supply and demand dictate that the price of the debt tokens would increase. Further, if Celsius were to buy up a lot of their debt tokens, it would be clear that someone is buying up a lot of their debt, however, if Celsius were able to somehow buy their debt tokens, they could also buy up their debt that is not tokenized, and they could do this much more quityly in private, which would allow them to buy at lower prices.

I would also point out that no one would be forced to sell their tokens at anything less than face value (except when Celsius were to exit bankruptcy).

I don't think you would.

You would no longer have a claim of 5 BTC, but a claim of 5,000 tokens. If the market rate for those 5,000 tokens is 0.001 BTC (given the market will immediately tank), then good luck convincing anyone that your 0.001 BTC of tokens is still worth 5 BTC. If Celsius somehow manage to transition to a profitable company (not exactly a likely scenario), then instead or paying you back your 5 BTC, instead they can just buy back the tokens for the going market rate, which will result in you recovering fractions of a penny to the dollar.

That is not how I read how the token would work.

From what I understand, if Celsius owed someone 5BTC, they might convert that to 5000 token units, and give you 5000 token units that represent your 5BTC claim. If you held the 5000 token units, you would have the same claim as you previously did, but if you were to sell the token units, you would be giving up your claim and would be transferring the claim to whoever buys the token units.

Someone who does nothing with their token units would be in the same position as someone as what would have happened if Celsius had never issued any tokens. Someone who buys the tokens would have the same rights as someone described in the previous sentence.

I understand that Celsius would be unable to exit bankruptcy without satisfying the token units. This would be done either via Chapter 7 in which Celsius would redeem each token unit at the same amount, or via Chapter 11 via redeeming the token units for equity in the new company. This is the same as if Celsius had not issued any token.