One client, who reported having $32,000 in crypto locked up at Celsius, noted the impact. The message also said the company had the reserves to pay its obligations, and withdrawals were being processed as normal. "We have made it through crypto downturns before (this is our fourth!). Our security team and infrastructure is second to none," the firm wrote on June 7. "Celsius has one of the best risk management teams in the world. Many of the letters point to the CEO's AMA (Ask Mashinsky Anything) online chats as key to their confidence in him and the platform, which presented itself as stable until days before it froze users' funds. "Alex would talk about how Celsius is safer than banks." "I have been a loyal Celsius customer since 2019 and feel completely lied to by Alex Mashinsky," wrote a client who AFP is not identifying to protect his privacy. While the letters vary in their level of sophistication about the crypto world - from self-confessed novices to all-in evangelists - and the monetary impacts range from a few hundred dollars to seven-figure sums, nearly all agree on one thing. "From that hard-working single mom in Texas struggling with past-due bills, to the teacher in India with all his hard-earned money deposited in Celsius - I believe I can speak for most of us when I say I feel betrayed, ashamed, depressed, angry," wrote one client who signed their letter E.L. The letters - posted to a public online court docket - come from around the world and recount tragic results of users' money being frozen. The company owed $4.7 billion to its users, according to a court filing earlier this month, and the endgame is unclear. Celsius and its CEO Alex Mashinsky had billed the platform as a safe place for people to deposit their crypto currencies in exchange for high interest, while the firm lent out and invested those deposits.īut as the value of highly volatile crypto currencies plummeted - bitcoin alone has shed over 60 percent since November - the firm faced mounting troubles until it froze withdrawals in mid-June.
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