Crypto Lender That Kept Bragging About How Great It Was Files for Bankruptcy

It's not clear when or even if customers will get their money back after Celsius filed for bankruptcy.

The titan, which boasted a loud-and-proud "Unbank Yourself" motto, attracted bigwig and amateur investors alike with a wildly high yield savings system marketed as a fee-free alternative to traditional banking While these incredibly high returns worried some analysts, the offering impressed many eager clients, and the firm held over $12 billion dollars in managed assets.

Early last month, Celsius halted all withdrawals and put billions of dollars in assets on ice in response to the widespread crash of the virtual currency. It seems like there isn't much hope for those who put their faith in the platform.

Unbank Yourself

There are other legal troubles for Celsius. A former investment manager sued the leader for inflating the price of its own coin and other allegations.

Celsius became a Ponzi scheme because it continued to market itself as a transparent and well-capitalized business.

Vermont's Department of Financial Regulation told CNBC that they believe the organization used customer assets in a variety of risky and illiquid investments, trading and lending activities.

Alex Mashinsky, the company's CEO, looks to be putting on a brave face despite the rough waters ahead. It's at least a braver face.

"I am certain that when we look back at the history of Celsius, we will see this as a defining moment," the Cryptbro in Chief said. The future of the company was strengthened when the company acted with resolve and confidence.

Celsius files for bankruptcy as hope for depositors dwindles.

There's more on the crash.