Celsius: (Pausing Withdrawals, Swap & Transfers, Update: Chapter 11 Bankruptcy)

deme on 13/06/2022 - 15:59
Last edited 14/07/2022 - 11:17 by 2 other users

https://blog.celsius.network/a-memo-to-the-celsius-community…

Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.

"Lenders have a lot to gain when they join Celsius. The platform pays out rewards as high as a 17% yield. These rewards are calculated by the system based on your loan terms and paid out every Monday.

Reckon you have to be pretty stupid (A Canadian Pension fund) to put your money in one of these things?

Update: 14/7: Celsius now in Chapter 11.

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    I loan money to invest in crypto
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    Crypto is a good investment
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Comments

  • Jimothy Wongingtons on 13/06/2022 - 16:04

    big oof - some wild times on the market at the moment

  • Drakesy on 13/06/2022 - 16:05
    +1

    Any platform promising guaranteed returns of this nature in an impending recession is questionable at best.

  • tsunamisurfer on 13/06/2022 - 16:06
    +5

    Stopping payments whilst promising / highlighting high future returns is the #1 line item in the Insolvent Financial Platform's playbook.

    • deme on 13/06/2022 - 16:45

      Rekon someone has published a book about it?

  • Mokr on 13/06/2022 - 16:15

    Is coinbase and okay wallet to use. Need to transfer bitcoin from exchanges for safe keepin

    Will exchanges also fail like coinspot?

  • rektrading on 13/06/2022 - 16:16

    Not your 🗝️, Not your #Bitcoin

    • SBOB on 13/06/2022 - 16:21
      +2

      But you've also spruked Celsius before.
      Eg
      https://www.ozbargain.com.au/comment/11383576/redir

      • rektrading on 13/06/2022 - 16:22
        +1

        Did I?

        I trade using DEXs.

        • deme on 13/06/2022 - 16:23
          +2

          https://www.ozbargain.com.au/comment/11913424/redir

          Celsius is safer than banks according to you

          • rektrading on 13/06/2022 - 16:25
            +2

            @deme:

            https://www.ozbargain.com.au/comment/11913424/redir
            rektrading on 22/03/2022 - 23:46
            If you think your money is safe on Celsius or Anchor you're insane

            If you think your money is safe in banks
            you're insane

            Canadian truckers found out the hard way that the feds can order the banks to DoS innocent people without due process.

          • brendanm on 13/06/2022 - 16:40
            +3

            @deme: Hahaha that is not at all what that comment says 😂

            • deme on 13/06/2022 - 16:40

              @brendanm: What do you think it says?

              • brendanm on 13/06/2022 - 16:43
                +3

                @deme: I think it says what it says. He did not say anything about the safety of Celcius, only said a negative thing about the safety of banks.

                • deme on 13/06/2022 - 16:44
                  +1

                  @brendanm: It takes some mental gymnastics to avoid the obvious deduction one can make from the comparison.

                  • brendanm on 13/06/2022 - 16:50
                    +2

                    @deme: It's actually the opposite. It takes mental gymnastics to infer what you want out of it, rather than simply reading it. There is absolutely no "better than" in that comment it all.

        • SBOB on 13/06/2022 - 16:25
          +8

          crypto bros spruking crypto always seem to have selective memory

  • rektrading on 13/06/2022 - 16:16
    +2

    Use a DEX.

    • deme on 13/06/2022 - 16:20

      https://www.ozbargain.com.au/comment/12053115/redir

      .#luna is getting backed by $3B #bitcoin.

      .#bitcoin have to damp hard for #luna to cliff dive.

      This you?

      Or https://www.ozbargain.com.au/node/671000#comment-11490841

      According to this thread you defend Celsius against "FUD" allegations that the CFO of Celsius was previously arrested for fraud.

      • rektrading on 13/06/2022 - 16:24
        +1

        Wrong link?

        https://www.ozbargain.com.au/comment/12053115/redir
        rektrading on 26/04/2022 - 22:03
        Bitcoin is the only hard asset that won't go to zero.

        Everything else is for fun and should be flipped to buy more Bitcoin.

        • deme on 13/06/2022 - 16:25

          hard asset

          A hard asset is a physical object or resource owned by an individual or business.

          I think this says enough.

          • rektrading on 13/06/2022 - 16:31
            +1

            @deme:

            hard asset

            A hard asset is a physical object or resource owned by an individual or business.

            I think this says enough.

            Or resource.

            Yes, I use #Bitcoin and #Ether to pay for services.

              • rektrading on 13/06/2022 - 16:36

                @deme: No. I use #Bitcoin and #Ether to pay for services.

                I use fiat money to buy coffee.

            • SBOB on 13/06/2022 - 16:41
              +2

              @rektrading:

              Yes, I use #Bitcoin and #Ether to pay for services.

              So based on your definition all forms of currency are now hard assets. Got it

              • deme on 13/06/2022 - 16:43
                +1

                @SBOB: It's a STore OF VALuE

              • rektrading on 13/06/2022 - 16:52
                +3

                @SBOB: It's not my definition.

                Hard assets are by legal definition property. The tax office defines #Bitcoin as property.

                • SBOB on 13/06/2022 - 16:56

                  @rektrading:

                  The tax office defines #Bitcoin as property

                  Would love to see the respective taxation agencies section/page that supports this?

                  Even though not au, even the IRS only says 'like property' so that it can be defined within their existing tax laws for general tax purposes, rather than as a currency….

                  No one is claiming btc is the same as real estate/property.

  • Cluster on 13/06/2022 - 16:21

    "Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals"

    Wait, what? I thought the whole point of crypto was that it was decentralized, and that The Man can't come in and shut you down.

    People bought into this scam?

    • Mokr on 13/06/2022 - 16:22

      It got a hundred upvoats on here

      • Cluster on 13/06/2022 - 16:25
        +1

        People want to get rich quick. I understand that.

        Where is the 17% interest coming from? From other people who buy into Celsius.

        We have a name for that.

        Why would someone borrow funds at basically credit card interest rates?

  • onetwothreefour on 13/06/2022 - 16:46

    Do I lock in my losses with coinspot and sell all I have now or wait it out for BTC to go back up?

    • deme on 13/06/2022 - 16:46
      -1

      @rektrading for not financial advice DYOR $MOON rockets

      • onetwothreefour on 13/06/2022 - 19:10

        Yeah I know what rekt would say, so maybe I should be doing the opposite?

  • deme on 13/06/2022 - 16:49
    +1

    This website is so good https://web3isgoinggreat.com/

  • randomusername2017 on 13/06/2022 - 16:53

    Somebody's got a f❤️n…

  • pegaxs on 13/06/2022 - 17:21
    +4

    Lol. Oops. Looks like Celsius has been dabbling with other people’s money or coins. This isn’t going to end well and I am 100% sure that this will end up with them either announcing that they can’t cover trades because they have no money, that they have had their stored coins stolen, or they have embezzled it and will just go play the “we’re bankrupt” card and disappear into the ether.

  • brendanm on 13/06/2022 - 18:13
    +1

    The salt on r/Celsius is quite good.

    • deme on 13/06/2022 - 19:53

      r/Celsius has been banned from Reddit
      This subreddit was banned due to being unmoderated.

      • brendanm on 13/06/2022 - 20:04
        +1

        Sorry, it's r/Celciusnetwork. I just type "r/whateveriwanttosee" into Google whenever I like to see people do stupid things.

        • moar bargains on 13/06/2022 - 21:54
          +1

          Heading there with my popcorn 🍿

  • deme on 13/06/2022 - 20:20

    https://twitter.com/Mashinsky/status/1524404643530477568

    Alex Mashinsky
    @Mashinsky
    All funds are safe. We continue to be open for business as usual

    As part of our responsibility to serve our community,
    @CelsiusNetwork
    implemented and abides by robust risk management frameworks to ensure the safety and security >of assets on our platform.
    1:02 AM · May 12, 2022·Twitter for iPhone

  • rektrading on 13/06/2022 - 21:26

    https://www.youtube.com/watch?v=NPCP_iTSm-w
    FEAR: Celsius HALTS Withdraws….
    Celsius Network has halted withdrawals, trading, and fund transfers - leading to enormous amounts of fear in the cryptocurrency markets. Did Celsius lose money and will they be able to stop this "bank run"

  • ALesha77 on 13/06/2022 - 22:29
    +2

    Described exactly this scenario and offered my thoughts to YOLO-folks here 2 month ago.
    Was equally applicable to the LUNA scenario as well.
    Sorry if you lost your money - I know how it feels.

    https://www.ozbargain.com.au/comment/12023714/redir

    Real Estate investors - sorry to say this but you asset class is next.
    Don't say that no-one warned you.

    • rektrading on 13/06/2022 - 22:55

      Nuke all of it.

      I WANT CHEAPER #BITCOIN.

      • ALesha77 on 13/06/2022 - 23:11

        Be careful what you wish for.
        With MicroStrategy break-even at around 20-21K and the amount of BTC that Mike will need to unload, you might as well get it for free soon.
        I hope you did think about reducing your position when I advised you so and now have some good old cash.

        • rektrading on 13/06/2022 - 23:23

          Saylor is a maxis. He won't sell unless the board forces his hand.

          $MSTR doesn't have that may #Bitcoin anyways.

          • ALesha77 on 14/06/2022 - 10:01

            @rektrading: Mike's issue is that he levered up by issuing debt to buy bitcoin and now it is not up to him to decide.
            If only he kept it on the balance-sheet equal to his cash - that would be his decision.

            MSTR owns around 130K BTC which is a lot but the total amount is not so important.
            As I mentioned many times - market will front-run these kind of events, there are bunch of short-sellers ready to take Mike out and then cover on him selling. Another question - who else will go under in this event and will there be more selling? I think we'll see soon.

            • rektrading on 14/06/2022 - 10:19

              @ALesha77:

              MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODL
              https://t.co/9WHsIB6Usx

              @saylor is buidl different.

              • ALesha77 on 14/06/2022 - 11:07

                @rektrading: I don't think you understand the full scale of a disaster and company marketing materials is not the best place to look for an answer.

                MSTR have issued $1.7 BILLION (with a B) of convertible bonds and those are now underwater with an average BTC price of 34K. While people can dispute the conditions and options for investors, this is a huge pressure point to liquidate the assets (with BTC being the main asset that MSTR owns).

                https://www.cth.group/insights/page/mcdsgttbotcctg/

                • rektrading on 14/06/2022 - 11:10

                  @ALesha77: The investors that bought the bonds have no claim to the #Bitcoin unless it was part of the agreement.

                  $MSTR is paying yield on the bonds and will make the investors whole then it matures.

                  I'm not saying $MSTR can't default. What I'm saying @Saylor didn't become a billionaire by putting his savings into the banks.

                  All his plays are high-risk high rewards.

                  • ALesha77 on 14/06/2022 - 12:42

                    @rektrading: We'll see.
                    I don't like the RR for this trade. Not until Mike is out.

  • MrMarket on 14/06/2022 - 08:20

    well young investors has to learn some how
    get rich quick scheme usually leave you a lot poorer
    you can learn

    1. through your own failure or
    2. someone else's failure

    it is a lot cheaper to learn from history with other people failure and save yourself a lot of money

    Let all repeat the cult mantra one more time for the next one
    code is law except it is not law, law is law
    the blockchain is immutable but it is not
    anonymous but law enforcement can trace transactions

    • rektrading on 14/06/2022 - 08:56

      . #Bitcoin isn't about getting rich quick.

      Anyone that thinks that is buying it for the wrong reasons.

      • MrMarket on 14/06/2022 - 09:21

        most of the youngsters including some of my nephew and nieces that I talk to all
        has that intention

        properties is out of their reach, they hope to get rich quick and even with crypto but what they found out
        now is they lost their shirts and shorts and properties is even further out of their reach.

        have they been smart and learn from history, they still be able to get into properties with proper saving plan not get rich quick scheme.
        most young investors has no concept of risk management, just follow social media and hashtag and influencer

        in the world of easy money no one talk about capital preservation but all will soon learn the important lesson of capital preservation

        • rektrading on 14/06/2022 - 09:34

          Real estate is the next bubble to pop.

        • mitchalbrown on 14/06/2022 - 11:29

          History only looks back… You could not look back at history and predict the internet so could never have profited from the rise of the FAANGs. If you only learned from history early last century you would have bought stocks in a buggey whip company instead of Ford because "if you look back through history horses have always been a mode of transport and i don't think thats changing anytime soon"

          Some of your nieces and nephews jumped into an investment they didn't understand… even the sharemarket burns you for that. If they bought BTC and ETH my only advice is to hold and come to the realisation that they're not gonna get rich quick but they have nothing to lose in holding now and only upside as these 2 bluechips are gonna be back above their previous all time high at some point (trust me - i've been here before). If they bought $%^&Coins then the advice is still the same but it's less certain if they will ever make their money back. This will serve as a valuable lesson that money generally can't buy and that is not to do something coz a youtooobor told you that you could be a millionaire but also if you don't understand what you are investing your money in… move along.

          I have great respect for the people on OzBargains who don't invest in crypto because they don't understand it but less for those who call it out as a scam coz they don't understand it.

  • mitchalbrown on 14/06/2022 - 11:15

    I don't kno how this will pan out for Celsius… I have some of my BTC in there to earn some yield.

    Optimistic me says that this is centralisation playing to it's strengths and stepping in to stop the bleeding - If Luna had shut down its chain/network early it probably could have stablised itself but it considered itself to decentralised to do that (and Do Kwon now seems like he was running for the door before anyone noticed what was goig on).

    Pesimistic me says that Mashinsky had been taking too much of the custodied assets and leveraging them on open markets and has since been heavily liquidated and is now being heavily squeezed. It could all be downhill from here.

    Ultimately, we can't complain about the heavy sell offs and collapses while tooting our horns about our massive gainz… it's all part of the crypto market. It must be noted here that these schemes that collapse are generally centralised entities (yes - even Luna/Terra was centralised) and this is not crypto - this is tradfi applying their business models to crypto and experiencing all the flaws that tradfi would experience if it weren't heavily regulated and/or manipulated.

    I have hopes that Celsius will resume their service once the market stablises, they still hold 150k btc and may be forced to sell off aprt of that to see them through the storm but if they can crawl to the start line of the next market recovery then they can dust themselves off and continue to operate.

    Welcome to the stage 2/3 of the crypto market cycle where they all say "I told you so"… this market is so forgiving though… I never thought i'd have another chance to but Eth for under $1k. anyone who missed out on the last bull run gets another chance to get in for the 2024 cycle.

    *not financial advice

  • MrMarket on 14/06/2022 - 11:26

    Boom Celsius 270m loan position liquidated, here come the bitcoin sell off
    I think it is game over for Celsius

    the band of youngster got suck into this thinking they are free from the government but they fall for these schema masters that
    took all their shorts and shirts.

    Wall St will slowly working through all these system and take all your money (I said this earlier with Luna attack) , they know the condition of the loan, the asset backing and they have the money and the smarts to target your exact pain point.

    There going to be some very rich Wall st boys by the time this thing end

  • bobwokeup on 14/06/2022 - 12:31

    CEL was going down well before this crash. I’ve lost a few thousand but I realised too late so just going to hold and hope it recovers one day.

  • rektrading on 14/06/2022 - 12:36

    $20,900 is still too high.

    https://www.coinoptionstrack.com/options/BTC/open-interest

  • SBOB on 14/06/2022 - 18:04
    +1

    Decent summary of the current cluster f that Celsius is in

    https://twitter.com/jonwu_/status/1536476104986267648?t=IXLw…

    • brendanm on 14/06/2022 - 18:35
      +1

      I hope I don't lose my $20 in Bitcoin I got for signing up with them. Been making 1 cent weekly for ages now, quite the little earner.

      • bobwokeup on 14/06/2022 - 18:49

        You won’t lose it but could take a few weeks/months before you can access it. Will take a while for BTC to recover anyway.

  • rektrading on 17/06/2022 - 12:46
    -6

    Gm frens,

    Breaking news

    https://twitter.com/zerohedge/status/1537621180831735809
    Chinese Banks Freeze Billions In Deposits: Officials Use Health QR Code To Bar Protestors https://t.co/uNaYTgGRXZ

    First Canada and now China. Who will be next?

    Enjoy.

  • abctoz on 18/06/2022 - 08:39

    https://twitter.com/tier10k/status/1537840564179279872?s=20&…

    looks like Alex has arrived at the dead inside phase

  • abctoz on 09/07/2022 - 11:42

    "Discussing the ongoing crypto catastrophe"

    https://www.youtube.com/watch?v=Y6z2AErpBso

  • dust on 14/07/2022 - 11:14
    +1
    Merged from Celsius Voluntarily Filed Petitions for Chapter 11

    Big yikes. This follows this a few weeks ago.

    https://www.businesswire.com/news/home/20220713005911/en/Cel…

    • Drakesy on 14/07/2022 - 12:27

      And it starts to unravel.

    • SBOB on 19/07/2022 - 18:36

      But …..my hard assets…..

    • [Deactivated] on 19/07/2022 - 19:06

      What are the chances of people getting anything back?

      • dust on 19/07/2022 - 20:32

        "Investors" will get something back, but likely to be a few cents in the dollar back.

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