KEY POINTS
- Celsius customers are hoping heartfelt letters will convince the bankruptcy courts to return their money
- Crypto platforms do not have FDIC insurance or the other protections offered by bank accounts
- Always read the terms and conditions before you commit money to a crypto platform and only invest money you can afford to lose
Celsius, the crypto lending platform that collapsed over the summer, owes $4.7 billion, according to its bankruptcy filing. That’s a lot of money. For some retail investors, it was their life savings. For others, it was money they wanted to put towards a house deposit or use to fund their retirement. They trusted Celsius and believed it was a safe alternative to a savings account.
Then Celsius froze withdrawals in June, and that trust was destroyed. Many customers are grappling with the possibility that they could lose their money altogether. Celsius owes about $1.2 billion more than it holds, and retail investors will be low down on the pecking order when it comes to recovering funds. It’s now in the hands of the bankruptcy courts who need to decide who gets what.
Celsius customers fight for their life savings
One big issue for Celsius