{"id":479793,"date":"2022-07-31T12:24:28","date_gmt":"2022-07-31T09:24:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-clients-beg-for-their-cash-back-after-lenders-crash\/"},"modified":"2022-07-31T12:24:28","modified_gmt":"2022-07-31T09:24:28","slug":"crypto-clients-beg-for-their-cash-back-after-lenders-crash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-clients-beg-for-their-cash-back-after-lenders-crash\/","title":{"rendered":"#Crypto clients beg for their cash back after lender&#8217;s crash"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e21dc45f75\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e21dc45f75\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-clients-beg-for-their-cash-back-after-lenders-crash\/#%E2%80%9CCrypto_clients_beg_for_their_cash_back_after_lenders_crash%E2%80%9D\" >&#8220;Crypto clients beg for their cash back after lender&#8217;s crash&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CCrypto_clients_beg_for_their_cash_back_after_lenders_crash%E2%80%9D\"><\/span>&#8220;Crypto clients beg for their cash back after lender&#8217;s crash&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2022\/clients-of-a-crashed-c.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2022\/clients-of-a-crashed-c.jpg\" data-sub-html=\"Clients of a crashed crypto lender Celsius are fighting to get their money back.\">\n<figure class=\"article-img\">\n            <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2022\/clients-of-a-crashed-c.jpg\" alt=\"Clients of a crashed crypto lender Celsius are fighting to get their money back\" title=\"Clients of a crashed crypto lender Celsius are fighting to get their money back.\" width=\"800\" height=\"530\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                Clients of a crashed crypto lender Celsius are fighting to get their money back.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>An Irishman at risk of losing his farm. An American having suicidal thoughts. An 84-year-old widow&#8217;s lost life savings: People caught in the meltdown of crypto lender Celsius are pleading for their money back.<\/p>\n<p>                                                                                Hundreds of letters have poured in to the judge overseeing the firm&#8217;s multi-billion-dollar bankruptcy and they are heavy with anger, shame, desperation and, frequently, regret.<\/p>\n<p>&#8220;I knew there were risks,&#8221; said a client whose letter was unsigned. &#8220;It seemed a worthwhile risk.&#8221;<\/p>\n<p>Celsius and its CEO Alex Mashinsky had billed the platform as a safe place for people to deposit their crypto currencies in exchange for high interest, while the firm lent out and invested those deposits.<\/p>\n<p>But as the value of highly volatile crypto currencies plummeted \u2013- bitcoin alone has shed over 60 percent since November -\u2013 the firm faced mounting troubles until it froze withdrawals in mid-June.<\/p>\n<p>The company owed $4.7 billion to its users, according to a court filing earlier this month, and the end<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> is unclear.<\/p>\n<p>The letters \u2013- posted to a public online court docket \u2013- come from around the world and recount tragic results of users&#8217; money being frozen.<\/p>\n<p>&#8220;From that hard-working single mom in Texas struggling with past-due bills, to the teacher in India with all his hard-earned money deposited in Celsius \u2013- I believe I can speak for most of us when I say I feel betrayed, ashamed, depressed, angry,&#8221; wrote one client who signed their letter E.L.<\/p>\n<p>While the letters vary in their level of sophistication about the crypto world -\u2013 from self-confessed novices to all-in evangelists \u2013- and the monetary impacts range from a few hundred dollars to seven-figure sums, nearly all agree on one thing.<\/p>\n<p>&#8220;I have been a loyal Celsius customer since 2019 and feel completely lied to Alex Mashinsky,&#8221; wrote a client who AFP is not identifying to protect his privacy. &#8220;Alex would talk about how Celsius is safer than banks.&#8221;<\/p>\n<p>Many of the letters point to the CEO&#8217;s AMA (Ask Mashinsky Anything) online chats as key to their confidence in him and the platform, which presented itself as stable until days before it froze users&#8217; funds.<\/p>\n<p><b>Repeated assurances before fall<\/b><\/p>\n<p>&#8220;Celsius has one of the best risk management teams in the world. Our security team and infrastructure is second to none,&#8221; the firm wrote on June 7.<br \/>\n                                            <!-- Google middle Adsense block --><\/p>\n<p>&#8220;We have made it through crypto downturns before (this is our fourth!). Celsius is prepared,&#8221; the firm wrote.<\/p>\n<p>The message also said the company had the reserves to pay its obligations, and withdrawals were being processed as normal. <\/p>\n<p>One client, who reported having $32,000 in crypto locked up at Celsius, noted the impact.<\/p>\n<p>&#8220;Right up until the end, the retail investor received assurance,&#8221; the client wrote to the judge.<\/p>\n<p>But that changed quickly, and on June 12 Celsius announced the freeze: &#8220;We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.&#8221;<\/p>\n<p>Some clients got the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> in a message from the company.<\/p>\n<p>&#8220;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,&#8221; wrote one man who had about $50,000 in assets with Celsius.<\/p>\n<p>The clients who said they were hardest hit, including a man who said he placed $525,000 he got from a government loan on Celsius, disclosed they had considered killing themselves.<\/p>\n<p>Others reported heavy stress, lack of sleep and feelings of deep shame for putting their retirement savings or their children&#8217;s college money into a platform that was far riskier than they knew.<\/p>\n<p>&#8220;As a private unregulated company, Celsius does not come under any requirement for disclosure,&#8221; is how the Washington Post summarized the situation.<\/p>\n<p>Celsius did not reply to a request for comment on the clients&#8217; letters.<\/p>\n<p>For people like one 84-year-old woman, who only had her roughly $30,000 in crypto savings on Celsius for a month, their hope lies in the bankruptcy proceedings.<\/p>\n<p>&#8220;It&#8217;s just not unusual for people to come out of something like this with zero,&#8221; said Don Coker, an expert witness on banking and finance.<\/p>\n<p>&#8220;Obviously I feel sorry for anyone who loses an investment like this, but it is just something where they need to be aware of the risks,&#8221; he said.\n                                                                                                                        <\/p>\n<hr\/>\n<div class=\"article-main__explore my-4 d-print-none\">\n<p>                                            Crypto lending world sways under risk and turmoil\n                                        <\/p><\/div>\n<hr class=\"mb-4\"\/>\n<p class=\"article-main__note mt-4\">\n                                                \u00a9 2022 AFP<\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>                                                 <strong>Citation<\/strong>:<br \/>\n                                                 Crypto clients beg for their cash back after lender&#8217;s crash (2022, July 31)<br \/>\n                                                 retrieved 31 July 2022<br \/>\n                                                 from https:\/\/techxplore.com\/news\/2022-07-crypto-clients-cash-lender.html<\/p>\n<p>                                            This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no<br \/>\n                                            part may be reproduced without the written permission. The content is provided for information purposes only.<\/p><\/div>\n<\/p><\/div>\n<p><script id=\"facebook-jssdk\" async=\"\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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An Irishman at risk of losing his farm. An American having suicidal thoughts. An 84-year-old widow&#8217;s lost life savings: People caught in the meltdown of crypto lender Celsius are pleading for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":479794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/2022\/clients-of-a-crashed-c.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-479793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/479793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=479793"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/479793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/479794"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=479793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=479793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=479793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}