More than 100 letters from clients affected by Celsius’s bankruptcy have been sent to the judge in charge of the case. They are among the 1.7 million customers who can no longer recover their funds.
Testimonials are hard to read. Many customers of Celsius, the cryptocurrency lending platform that has been bankrupt for two weeks, have sent letters to judge Glenn Martin in charge of the case.
A blog has compiled most of these letters, which can also be found on Stretto, the New York firm in charge of the case. More than 100 public letters make it possible to understand the extent of the situation. Customers, who had trusted 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 tension in the cryptocurrency market. It plunged its 1.7 million customers, spread across more than 100 countries, into the uncertainty of one day recovering their funds.
“I invested nearly $300,000 in Celsius”
The 59-year-old explains that he invested nearly $300,000 in Celsius, “almost all of his savings”, mainly 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 cheated by Alex Mashinsky (co-founder of Celsius, editor’s note) who, during the weekly AMAs (“Ask Me Anything”), had repeatedly stated that our funds were safe and would be protected by Celsius, “adds he.
The latter, on the other hand, considers himself “responsible” for not having read Celsius’s general conditions more carefully, but he could “not believe that what Alex continued to be so clearly contradicted by the general conditions”.
“I had a plan,” writes a client, who is about to leave the US Army this week.
“I had saved over $100,000 which I deposited into Celsius Network in 2021, mostly in USDC. This money was set aside to support me during my post-military education. It took me decades of sacrifice to save that money. Like so many other people, the freezing of funds at Celsius had a negative impact on my life and I had to borrow the money from my family just to make ends meet,” he explains – 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”, explains this woman who joined the platform in January.
She points out that she invested the equivalent of $19,000 in cryptocurrency today, but that it was “worth double” 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 am expecting my child in two and a half months”
An Australian customer needs to recover the money she had deposited on the platform, to finance maternity costs related to the birth of her future child.
“Like many other retail investors, my family and I are being severely affected, both financially and mentally, by the bankruptcy and frozen funds. I am expecting my third child in 2 months and half and I need the money to pay for the doctor, hospital and expenses,” she wrote.
“I had planned to withdraw funds from Celsius to finance my birth and my aunt’s operation at the end of June. I am afraid that my stress due to the Celsius situation will affect my child’s health” , adds the latter, who has attached an image of the ecology of her child.
As a reminder, Celsius was one of the main cryptocurrency lending/staking platforms, which consisted of lending its cryptocurrencies on a blockchain against interest. The company offered interest rates over 18% for savers, but only 0.1% for borrowers.
Celsius was first heard in court early last week. At this stage, Celsius has indeed not requested “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 company’s next steps, it mentions coming up with a “plan” under Chapter 11 that affects its customers.
This plan “(i) will give clients the option of either cashing back at a reduced price or staying in a long-term cryptocurrency strategy, (ii) maximizing returns for parties involved, and (iii) reorganize the Celsius business,” the company said.