by ekpyrotic on 10/6/22, 3:00 PM with 309 comments
by jedberg on 10/6/22, 4:17 PM
The reason fiat money works is because at the end of the day if you run into trouble you have the legal system to make things right. And if the perpetrator of the crime doesn't listen to the legal system, there are people with guns/violence to back that up. That's why the whole system works -- because of the threat of violence.
Crypto doesn't have that. It has a lot of advantages (I use crypto myself) but it also has a big disadvantage, for now.
When the USA starts issuing it's own crypto they might solve this problem by requiring KYC to get the coins, but then of course you loose the anonymity aspect.
by syntaxing on 10/6/22, 3:37 PM
by MichaelCollins on 10/6/22, 3:37 PM
by a2tech on 10/6/22, 3:27 PM
by scifibestfi on 10/6/22, 4:37 PM
"Your report that Mr. Goldstein withdrew millions of dollars in advance of the “pause” is flatly mistaken. The reality is that Mr. Goldstein did not withdraw even one dollar in the four weeks prior to the pause—to the contrary, he deposited over $90,000 in CEL tokens in late May, just three weeks before the pause. Most of the supposed “withdrawals” from our client’s account were, in fact, regular-course transfers between his accounts and involved corresponding deposits. Indeed, in the year before the pause, Mr. Goldstein had net positive deposits into Celsius (including interest), not withdrawals. Your account unfortunately distorts Mr. Goldstein’s position, as he currently has millions locked up in Celsius, making him one of the Company’s largest unsecured creditors. Nuke is proud of his work to create a secure platform for Celsius users, and has been working tirelessly day in and day out to help restructure the Company to the benefit of all its creditors."
by omgomgomgomg on 10/6/22, 6:18 PM
It is remarkable how they used the depositors or investors money to pay for their lawyers and yet the government considers this a chapter 11 instead of 7, as if there is any way to conduct business going forward. Reputation gone, money gone, the owners gone.
Every time something like this happens, on such a scale, makes you wonder, how can so many people fall for this?
I am not sure greed is the only factor, there must be more behind it, some shrinks will have a field day.
And all the victims are now asking for a government intervention.
There is no free lunch, even mashinkis money will come at a large cost. From what I read, many lost over 100k and some lost 7 digits, certainly some shady people amongst these.
In conclusion, this was planned from the very beginning. If they could run this profitable, fine, if not, they hiding money followed by chapter 11 was the backup plan.
by atty on 10/6/22, 3:27 PM
by geophile on 10/6/22, 3:40 PM
- If Celsius is a trading platform, how can Celsius itself owe anybody anything?
- My naive understanding is that cryptocurrency, being based on blockchain, is a log of universally agreed upon, legitimate transactions. So how can there be a liquidity crisis at all, let alone one in the billions? How is the platform allowing transactions not backed by actual funds?
by BurningFrog on 10/7/22, 12:50 AM
by JaggerFoo on 10/6/22, 4:43 PM
I'm pro-crypto, I think the innovation and paradigm are brilliant - I am developing a small project in crypto. I don't fool myself into believing the hype that exceeds it's capabilities, project organization or true architecture at hand.
Cheers
by cimi_ on 10/6/22, 3:59 PM
See this (entertaining) video :) https://www.youtube.com/watch?v=rTwzM0_PjPw
by woah on 10/6/22, 4:03 PM
by potamic on 10/6/22, 3:39 PM
by mouzogu on 10/7/22, 5:53 AM
It's not just about crypto, it's about who is allowed to use inside information.
Celsius was a scam, if something seems too good to be true then it is. The same applies to LUNA and it's Anchor protocol which was giving 20% APY on the UST stablecoin. We saw what happened there.
by arcticbull on 10/6/22, 4:23 PM
Anyone who withdrew money from Celsius in the 90 days leading up to the bankruptcy can be ordered by the judge to put it back in, and that timeline is extended to 1 year for insiders. [1]
A bunch of the folks who thought they got out of Madoff's fund learned that lesson last time.
[1] https://www.lowenstein.com/media/3095/beware-of-bankruptcy-c...
by jeffwask on 10/6/22, 4:26 PM
by aaroninsf on 10/6/22, 7:06 PM
by michaelcao on 10/7/22, 1:37 AM
by fourseventy on 10/6/22, 5:06 PM
by AviationAtom on 10/7/22, 1:03 AM
by wnevets on 10/6/22, 4:44 PM
by outside1234 on 10/6/22, 9:06 PM