“I knew there were risks”said a customer who did not sign his letter. “It seemed like a risk worth taking.” Celsius and its CEO, Alex Mashinsky, presented the platform as a safe place where people could deposit their cryptocurrencies in exchange for high interest, while the firm lent and invested those deposits.
But as the value of highly volatile cryptocurrencies plummeted – Bitcoin alone has lost 60% of its value since November – the firm faced more problems, until it froze withdrawals in mid-June. The company owes $4.7 billion to its users, according to a court document released this month, and it’s unclear how the matter will play out.
The letters, published in an online judicial archive, come from all over the world and tell of the tragic consequences of the freezing of users’ money. “From that working single mom in Texas dealing with overdue bills, to the teacher in India who put all his savings into Celsius, I think I can speak for most of us when I say I feel betrayed, ashamed, depressed, angry.” , wrote one of the clients who signs his letter as THE
Although the letters vary in their level of knowledge of the world of cryptocurrencies – from self-confessed newbies to convinced that they bet it all – and the monetary impacts range from a few dollars to seven figures, almost all agree on one point.
“I have been a loyal customer of Celsius since 2019 and feel completely attached to Alex Mashinsky”, wrote a client that the AFP decided not to identify to protect their privacy. “Alex was talking about how Celsius was safer than banks.”
Many letters point to the AMA (Ask Mashinsky Anything) online chats offered by the CEO as the main reason for their confidence in him and in the platform, presented as stable until days before freezing data. user funds.
One client, who claimed to have $32,000 worth of cryptocurrency locked in Celsius, wrote to the judge that “practically until the end, the retail investor received guarantees”.
But that quickly changed, and on June 12, Celsius announced the freeze: “We are making this decision today to put Celsius in a better position to honor its retirement obligations over time.”
Source: Ambito
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