Users are wondering if they will ever see their money again after Celsius filed for Chapter 11. The platform's shady terms of service made it clear that the average user would have to wait in line with the company's other creditor.
Celsius, which allowed people to buy and sell cryptocurrencies like its native token, also called Celsius, gained attention for its large return on investment. On June 12th, the company paused withdrawals for 1.7 million users but assured them they could still accumulate rewards.
Celsius customers will likely have a hard time seeing any of their regular money coming back, as imaginary money at this point is not real money. Celsius is still trying to put on a happy face even though it is in the process of filing for Chapter 11.
Celsius said in an email to users overnight that the Chapter 11 cases give the company the best chance to stabilizing the business, complete a restructuring transaction that maximizes value for all stakeholders, and emerge from Chapter 11 positioned for success in thecryptocurrencies industry.
We apologize that communication with our teams and community has been very limited over the past few weeks, and we look forward to being able to offer greater transparency with everyone through our reorganization.
The Celsius token has lost 80% of its value in the past six months and desperate users have spent the past month trying to inflate the price. The effort has doubled down on failure and given more money to the people who started the scheme in the first place.
According to the Financial Times, the company bought $350 million worth of its own token in July of 2019. Alex Mashinsky allegedly made some large sales even though he swore that Celsius executives didn't sell the token.
According to the Financial Times, it is estimated that Mashinsky sold around $44 million worth of Celsiuscryptocurrencies. A request for comment was not responded to by Mashinsky.
Celsius gave a rather rosy outlook by noting that all the other companies that have filed for bankruptcy have emerged just fine. Some companies have filed for bankruptcy and bounced back, but others actually produce. Celsius didn't create a product. Customers' money was taken and kept for them. The value of digital Monopoly money was less than before. Coins became useless in some instances.
In April of this year, Celsius published a video titled, "Why Choose Celsius," but it seems that the video has been deleted. The benefit of Celsius was being highlighted in the video.
Messages on social media from users of the platform are heartbreaking, with people saying they really need the money that is tied up in Celsius's bank accounts. It is not known how much money is left.
One user wrote that he was a single father and needed his money.
I would like to know if I understand that there is no action we as depositors can take now. I have to wait and see if they return our money. If so, where should we keep an eye on?
I'm a single mom. This will change the way I live. Another person wrote that they felt sick.
Celsius is a company that has collapsed in the past few months. The fourth largest coin in the world plummeted to nothing in a few days in May. The people behind Luna were asked what they had done. They just started a new coin. Gizmodo doesn't think that investing in Luna 2 is a good idea.
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