These letters are from customers who were victims of the Celsius bankruptcy

More than 100 letters from clients affected by Celsius’ bankruptcy were sent to the judge presiding over the case. They are among the 1.7 million customers who will not be able to recover their funds.

Testimonials are hard to read. Many customers of Celsius, the cryptocurrency lending platform that went bankrupt within two weeks, sent letters to condemn Glenn Martin who handled the case.

A blog has compiled many of these letters, which are also available to Stretto, the New York firm handling the case. More than 100 public letters make it possible to understand the extent of the situation. Customers, who trust Celsius to manage their cryptocurrencies, can no longer cope with the situation.

As a reminder, Celsius froze withdrawals and transfers from its users on June 12 amid high tensions in the cryptocurrency market. This left 1.7 million customers, spread over more than 100 countries, in the uncertainty of one day recovering their funds.

“I invested almost $300,000 in Celsius”

The 59-year-old explained that he invested almost $300,000 in Celsius, “almost all of his savings”, mainly in the USDC stablecoin.

“At the time, I thought the USDC was a ‘stable’ currency backed by real dollars, (that) my money was safe,” he explained.

“I feel cheated by Alex Mashinsky (co-founder of Celsius, editor’s note) who, during the weekly AMAs (‘Ask Me Anything’), repeatedly stated that our funds are safe and protected at Celsius ,” he added.

The latter, on the other hand, considers himself “responsible” for not reading Celsius’ general conditions better, but he “can’t believe that what Alex always says is clearly contradicted by those general condition”.

“I have a plan,” wrote one client, who is about to leave the US Army this week.

“I saved more than $100,000 which I deposited in Celsius Network in 2021, mostly in USDC. This money was allocated to support me during my post-military education. It took me decades of sacrifice to save that money. Like to other people, freezing funds in Celsius had a negative impact on my life and I had to borrow money from my family just to make ends meet,” he explained. – he.

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

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

He pointed out that he invested the equivalent of $19,000 in cryptocurrency today, but it “doubled in value” when he 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” , explained this woman.

“I am expecting my child for two and a half months”

An Australian customer needs to get back the money he deposited on the platform, to cover the maternity expenses related to the birth of his future child.

“Like many other retail investors, my family and I have been severely affected, financially and mentally, by the bankruptcy and frozen funds. I am expecting my third child in 2 and a half months and I need money to pay the doctor, the hospital and the expenses,” he wrote.

“I plan to withdraw funds from Celsius to finance my birth and my aunt’s surgery at the end of June. I am afraid that my stress due to the Celsius situation will affect my child’s health” , added the latter, which is attached to an ultrasound image of her child.

As a reminder, Celsius is one of the main lending platforms (or lending / staking of cryptocurrencies), which consists of lending its cryptocurrencies on a blockchain against interest. The company offers interest rates of more than 18% for savers, but only 0.1% for borrowers.

Celsius was first heard in court earlier last week. At this stage, Celsius never sought “authorization” from the New York court “to allow customer withdrawals”. “Customer complaints will be handled through the Chapter 11 process,” the company said.

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

This plan “(i) will give clients the option of either cash back at a reduced price or stick to a long-term strategy in cryptocurrencies, (ii) maximize returns for stakeholders , and (iii) reorganizing the Celsius business,” the company said.

Leave a Reply

Your email address will not be published.