These letters from customers who are victims of Celsius bankruptcy

More than 100 letters from clients affected by Celsius’ bankruptcy were sent to the judge in charge of the case. They are among the 1.7 million customers who can no longer recover their funds.

The testimonials are difficult to read. Many clients of Celsius, the cryptocurrency lending platform that went bankrupt for two weeks, have sent letters to Judge Glenn Martin in charge of the case.

A blog has collected most of these letters, which can also be found on Stretto, the New York company responsible for the case. More than 100 public letters make it possible to understand the extent of the situation. Customers, who had relied on Celsius to manage their cryptocurrencies, can no longer cope with the situation.

Recall that Celsius froze withdrawals and transfers from its users on June 12 in a context of high tension in the cryptocurrency market. It plunged its 1.7 million customers, spread across more than 100 countries, into the uncertainty of one day to get their funds back.

“I have invested nearly $ 300,000 in Celsius”

The 59-year-old explains that he has invested nearly $ 300,000 in Celsius, “almost all of his 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 scammed by Alex Mashinsky (co-founder of Celsius, ed) who, during the weekly AMAs (” Ask Me Anything “), repeatedly stated that our funds were safe and would be protected from Celsius”, he adds. .

The latter, on the other hand, considers himself “responsible” for not having read the general conditions of Celsius more carefully, but “could not believe that what Alex was constantly saying would have been so clearly contradicted by the general conditions”.

“I had a plan,” writes a client, who is leaving the US military this week.

“J’avais économisé plus de 100.000 dollars que j’ai déposés sur Celsius Network in 2021, mainly in USDC. Cet argent a été mis de côté pour me soutenir pendant mes études post-militaires. Il m’a fallu des décennies de sacrifices pour économiser cet argent. Comme tant d’autres personnes, le blocage des fonds chez Celsius a eu un impact négatif sur ma vie et j’ai dû emprunter de l’argent à ma famille juste pour joindre les deux bouts “, explique-t -they.

“I can’t sleep, my husband doesn’t know what happened”

“I am 50 years old and I work in the health sector. I don’t have a lot of money compared to the others, but it is a lot for me and my family,” explains this woman who joined the platform in January.

He points out that he invested the equivalent of $ 19,000 in cryptocurrency today, but that he was worth double when he bought cryptocurrencies.

“I’m sure this value will triple in the near future. I just want to get my cryptocurrencies back. I’m frustrated, I can’t sleep, my husband doesn’t know what happened. Please help us. 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 finance the maternity expenses associated with the birth of her future child.

“Like many other retail investors, my family and I are severely affected, both financially and mentally, by the bankruptcy and freezing of funds. I am expecting my third child in 2.5 months and I need the money to pay the doctor. , hospital and expenses, “he wrote.

“I had planned to withdraw funds from Celsius to finance my birth and my aunt’s operation at the end of June. I fear that my stress due to the Celsius situation will affect my son’s health,” adds the latter, who attached an image of her son’s ultrasound.

Recall that Celsius was one of the leading cryptocurrency lending / staking platforms, which consists of lending its cryptocurrencies on a blockchain against interest. The company offered interest rates above 18% for savers, but only 0.1% for borrowers.

Celsius was first heard in court earlier last week. In fact, at this stage, Celsius did not seek “authorization” from the New York court “to authorize customer withdrawals”. “Customer complaints will be handled through the Chapter 11 process,” the company said.

The company will be heard again in mid-August by the courts. Among the next steps the company is considering is developing a “plan” under Chapter 11 that affects its customers.

This plan “(i) will offer clients the option to redeem at a reduced price or remain in a long-term cryptocurrency strategy, (ii) maximize returns for stakeholders, and (iii) reorganize the Celsius business”, the company said.

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