According to a press release from the company, all trading has been stopped. Questions remain about whether Celsius will ever allow users to withdraw their money, thanks to some rather slippery language in its terms of service, as major Cryptocurrencies plummeted over the weekend.
Celsius is pausing all withdrawals, swaps and transfers due to extreme market conditions. The company said in a statement that they were taking this action to put Celsius in a better position to honor its withdrawal obligations.
Celsius, which claims to have 1.7 million users, allows people to trade major cryptocurrencies likebitcoin and ethereum, all while promising incredibly high returns for people who were holding.
We want to act in the interest of our community. We have activated a clause in our terms of use that will allow for this process to take place. Celsius has valuable assets and we are working hard to meet our obligations
Celsius is referring to "terms of use." The terms of use allow Celsius to stop all trading. If Celsius goes bankrupt, you may not be able to access your money again, something that US consumers at traditional banks don't have to worry about.
The Celsius website has the following terms of use.
In the event that Celsius becomes bankrupt, enters liquidation or is otherwise unable to repay its obligations, any Eligible Digital Assets used in the Earn Service or as collateral under the Borrow Service may not be recoverable, and you may not have any legal remedies or rights in connection with Celsius’ obligations to you other than your rights as a creditor of Celsius under any applicable laws.
Celsius claims users will still earn rewards even though everything else is paused, which means users will be earning high interest rates on fake internet money that is rapidly decreasing in value. If Celsius isn't able to get operations back up and running, what good interest rates might be?
For the benefit of our entire community, we are taking this necessary action in order to preserve and protect assets. Celsius said that customers will accrue rewards during the pause.
According to a promotional video uploaded to YouTube back in April titled, "Why Choose Celsius?", those "rewards" and high interest rates all sounded nice.
When will Celsius users be able to access their money? People seem to have been anticipating that. They haven't made any promises about a timetable.
The most responsible action we can take to protect our community is to pause withdrawals, swap, and transfers. To protect and preserve assets is what we are focused on. We want to restore withdrawals, swap, and transfers as quickly as possible. Celsius said there is a lot of work to be done as we consider various options.
Are you able to catch all that? Delays are possible.
Since the pause on withdrawals was announced, Alex Mashinsky has been tight-lipped on social media. As recently as Saturday night, Mashinsky was accusing people of spreading FUD, an acronym that means "fear, uncertainty, and doubt."
Early Monday morning, Mashinsky didn't reply to an email.
Accusing someone of spreading FUD is one of the worst things you can say about the community. It was old fashioned, healthy skepticism about cryptocurrencies, a way of making money that seems to work more like a pyramid scheme than a sound financial system
In recent weeks, there have been several major implosions. Terra and its stable coin, Luna, went into a death spiral within a few days. What did Do Kwon do after losing so much money? A new coin was started by him.
It's almost like you have to respect it. It was almost done.
All Rights Reserved © 2024
