“Please help us”: These letters from customers who fell victim to Celsius’ bankruptcy
More than 100 letters from clients affected by Celsius’ bankruptcy were sent to the judge in charge of the case. You are among the 1.7 million customers who can no longer get their money back.
Reviews are difficult to read. Many customers of Celsius, the cryptocurrency lending platform that has been bankrupt for two weeks, have sent letters to Judge Glenn Martin on the case.
A blog compiled most of these letters, which can also be found at Stretto, the New York law firm handling the case. More than 100 public letters make the extent of the situation understandable. Customers who trusted Celsius to manage their cryptocurrencies are no longer able to cope.
As a reminder, on June 12, Celsius froze its users’ withdrawals and transfers amid high tension in the cryptocurrency market. It has left its 1.7 million customers in more than 100 countries in the dark of knowing that they will one day get their funds back.
“I Invested Almost $300,000 in Celsius”
The 59-year-old explains that he has invested nearly $300,000 in Celsius, “almost all of his life savings,” mostly in the USDC stablecoin.
“At the time I thought USDC was a ‘stable’ currency backed by real dollars (that) my money would be safe,” he explains.
“I feel betrayed by Alex Mashinsky (Celsius co-founder, ed.) who has repeatedly stated during the weekly AMAs (“Ask Me Anything”) that our funds are safe and protected by Celsius,” adds he added.
The latter, on the other hand, feels “responsible” for not having read the Celsius framework more closely, but “can’t believe that what Alex kept saying would contradict the framework so clearly”.
“I had a plan,” writes a client who will leave the US Army this week.
“I had over $100,000 saved that I put into Celsius Network in 2021, mostly in USDC. This money was set aside to support me during my post-military training. I have taken decades of sacrifices to save this money. Like so many other people, freezing funds at Celsius had a negative impact on my life and I had to borrow money from my family just to make ends meet,” he explains.
“I can’t sleep, my husband doesn’t know what happened”
“I’m 50 years old and I work in healthcare. I don’t have a lot of money compared to others, but it’s a lot for me and my family,” explains this woman, who joined the platform in January.
She points out that she invested the equivalent of $19,000 in cryptocurrency today, but got “double rewards” when she bought cryptocurrencies.
“I’m sure this value will triple in the near future. I just want my cryptocurrencies back. I’m frustrated, I can’t sleep, my husband doesn’t know what happened. Please help you. Celsius lied to us .” , explains this lady.
“I’m expecting my child in two and a half months”
An Australian customer needs to recover the money she deposited on the platform to fund maternity expenses related to the birth of her future child.
“Like many other private investors, my family and I have been severely affected both financially and psychologically by the bankruptcy and the frozen funds. I’m expecting my third child in two and a half months and I need the money to pay for the doctor. “Hospital and expenses,” she wrote.
“I had planned to withdraw funds from Celsius at the end of June to fund my birth and my aunt’s surgery. I am afraid that my stress from the Celsius situation will affect my child’s health,” adds the latter, who attaches a picture of her child’s ultrasound.
As a reminder, Celsius was one of the main cryptocurrency lending/staking platforms, which consists of lending their cryptocurrencies on a blockchain at interest. The company offered interest rates of over 18% for savers, but only 0.1% for borrowers.
Celsius was first heard in court early last week. At this point, Celsius has not actually sought “authorization” from the New York court to “authorize customer withdrawals.” “Customer complaints are handled under the Chapter 11 process,” the company said.
The company will be heard again in court in mid-August. Among the next steps the company is considering is developing a Chapter 11 “plan” that will affect its customers.
This plan “(i) will give clients the option to either redeem at a reduced rate or stick to a long-term strategy in cryptocurrencies, (ii) maximize returns for stakeholders, and (iii) reorganize the Celsius business,” so the company said.