Topic: Crypto lender Celsius mulls possible restructuring amid financial woes - page 7. (Read 3112 times)

No, and as far as I am aware, neither a list of secured creditors or a statement that there are none has been made/filed. I'm basing these assumptions on the court documents they filed previous during the bankruptcy proceedings here: https://www.theblock.co/post/157647/celsius-bankruptcy-documents-claim-1-2-billion-balance-sheet-gap. With "Loans" of almost 1 billion dollars, on top of a $1.2 billion hole in their balance sheet, then there is not going to be much left to give back to the users.

I'd be happy to be proven wrong, but I think Celsius users shouldn't be holding their breath for a good outcome here.

Have you seen any financial disclosures or court filings that suggest that Celsius has a lot of secured creditors?

Yes, that's what I would expect too. So all money in earn accounts, and all money they can recover which was withdrawn from earn accounts in the previous 90 days, will simply be added to their pool of assets to be redistributed between all stakeholders. I still think the average user will end up with "pennies on the dollar", since all Celsius's big secured investors will take the majority of the funds, leaving little to be distributed among unsecured investors, i.e. regular users.

And if they refuse to return their withdrawals if ordered, then I suspect they would void any claim they had for other assets still stored on the Celsius platform. What a nightmare for these users, and what despicable behavior from Celsius. Clearly trying to maximize returns for their large investors at the expense of their average users.

I would rather describe the process as account holders who had recently withdrawn may have to have the amounts withdrawn comingled with other Celsius assets, and the amount withdrawn would also be added to the claims of debtholders.

I don't have the data to back this up, however, I think it is likely for many who have withdrawn to have other claims against Celsius, and any amounts demanded to be returned, that are not returned could be offset by other actual recoveries.

So, and correct me if I'm wrong here as I've not been keeping up to date with this case, does that not imply Celsius are not only planning to just keep the contents of all earn accounts, but are also planning to try use the 90-day clawback rule to try to recover any withdrawals from earn accounts in the 90 days prior to them filing for bankruptcy? So even if you moved your funds from an earn account to a custody account, if you did it within the 90 day limit then those funds will be forfeited too?

From that tweet:

This would be something else entirely if it passes. Imagine heeding all the warning signs, getting out of Celsius just in time in the days or weeks leading up to their collapse, and then later getting a court order saying "Sorry, give us back all your money or face charges". We would have to change the phrase to "Not your keys, not your coins. Your keys, maybe still not your coins."

Looking more and more like the only safe way forward is to completely avoid every centralized exchange and lending platform in existence.

According to leaked court documents Celsius Network may request that people withdrew 90 days prior to Chapter 11 to return the funds by court order.

So, and correct me if I'm wrong here as I've not been keeping up to date with this case, does that not imply Celsius are not only planning to just keep the contents of all earn accounts, but are also planning to try use the 90-day clawback rule to try to recover any withdrawals from earn accounts in the 90 days prior to them filing for bankruptcy? So even if you moved your funds from an earn account to a custody account, if you did it within the 90 day limit then those funds will be forfeited too?

The problem is that when a bank lends out money, it is not guaranteed that everyone will repay their loan in full. When that doesn't happen, the bank can have losses.

It shouldn't be risky or hard to lend money and pay dividends to lenders proportionally to the extra % paid back by borrowers... He completely screwed up a viable business model.

Even if they say its not true, no one will believe them. Just remember that few hours before Celsius stopped withdraws, Mashinsky tweeted that rumors of Celsius having issues is FUD and people shouldn't worry while he obviously knew what's going to happen.

I very much agree! 3 Arrows Capital was the most recent example of this that showed that some experienced crypto hedge fund managers are also just gambling on volatile market moves with unsustainably high

Neither Celsius CEO Mashinsky, nor Celsius commented on the article (as of when the archive was pulled), but if the article was accurate, Celsius was speculating with customer money on its own account. I don't know how reliable the reporter is, however, if this is true, Celsius was being very reckless, and I would speculate that the reason for the massive difference between customer deposits and Celsius assets is due to trading losses shortly before Celsius halted withdrawals.

The lack of responsability and empathy for customers' funds must be explained by psychiatry. The way he portrays himself on his twitter account with a picture of himself carved out on a roman bust, making reference to the emperors of ancient times, gives a hint of his delusional, vain and selfish characteristics.

Here is an archive of the article that is not subject to a paywall.

Neither Celsius CEO Mashinsky, nor Celsius commented on the article (as of when the archive was pulled), but if the article was accurate, Celsius was speculating with customer money on its own account. I don't know how reliable the reporter is, however, if this is true, Celsius was being very reckless, and I would speculate that the reason for the massive difference between customer deposits and Celsius assets is due to trading losses shortly before Celsius halted withdrawals.

I will reserve judgment until more credible information comes out, but in the interim, I would not let my money anywhere near the people involved.

Source https://www.ft.com/content/43d4fb5d-72a1-468c-aac8-9e11c4693f4e

And yet people still think that those at the top know what they are doing while in reality they are not better than many of us noobs that are buying high and selling low. 

It appears it was not only Celsius' involvement with Luna and UST that caused the cryptolender's bankruptcy. Their CEO has made himself the head of their cryptocoin trading strategy. I reckon that we should look around the cryptospace and know which other CEOs or company executives are doing something similar hehehhe.

They are advertising how much money they've paid back and how much they have recovered. What's next, a shinny bar that says we've lost only 75% of our customer's funds?

We are writing to let you know that we were recently informed by our vendor Customer.io that one of their employees accessed a list of Celsius client email addresses held on their platform and transferred those to a third-party.

We do not consider the incident to present any high risks to our clients whose email addresses may have been affected but are releasing this communication to make sure you are aware.

We have been in ongoing communication with Customer.io. They have confirmed that no other Celsius-related data was compromised beyond those identified email addresses.      

To state clearly, Celsius’ systems and security had not been involved or impacted. Celsius’ robust security and data protection management, and our focus on protecting our clients’ data, remain intact.

Context

On 30 June 2022, Celsius identified that one of its vendors, Customer.io, had been involved with a data breach connected to OpenSea. Celsius proceeded to remove all data held with Customer.io. We quickly contacted Customer.io and they responded that, as of that time, no Celsius data had been involved in their breach. Celsius requested all details surrounding the incident.

On 8 July 2022, Customer.io informed us that one of their employees had accessed a list of Celsius client email addresses from Customer.io’s platform, along with lists from several of their clients, and transferred these lists to a third-party bad actor. Customer.io confirmed that, other than the identified email addresses, no other Celsius client data was accessed or taken by the employee.

Evidence of this incident has not yet been provided to us by Customer.io.

Customer.io made a public statement on the matter

https://customer.io/blog/update-to-compromised-email-addresses-incident/

Further Information

Celsius sees this as a severe violation of vendor-client relations, and we have notified the appropriate authorities. Again, we do not consider the incident to present any high risks to our clients whose email addresses may have been affected. Should you wish to contact us for further information regarding the incident, please contact our data protection officer, Charles Roberts, at [email protected] for further information.
            
Sincerely,
Celsius

Note: Celsius will never ask you for private keys or to send funds to external addresses. Always verify that you’re interacting with the celsius.network domain when receiving emails from us.