Lending platform Celsius has recently become insolvent and has also filed for bankruptcy. However, Celsius says it will mine Bitcoin to pay back its debts. They are also claiming that investor deposits are their own as they state the terms and services of their platform. This shows the reality of centralized platforms and why you can’t trust them no matter what.
Can Bitcoin mining solve Celsius’s troubles?
Bitcoin mining is definitely one way of earning money and paying off its debt. However, you might be wondering where will the money to set up a mining facility come from. Well, about that, Celsius already has a BTC mining subsidiary. However, it is not running yet. On July 18, the bankruptcy court gave Celsius permission to finish the construction of this mining infrastructure. They were also charged custom duties on the mining hardware. The company’s lawyer claims that they can mine Bitcoin and pay back their creditors.
However, the bigger question is whether Celsius will be able to mine enough Bitcoins that they are able to fill the $1.2 billion hole in their balance sheet. Already, the high costs of energy are eating into the profits of well-established miners. So, it is difficult to expect anything from Celsius.
It is also possible that the mining facility goes to someone else, or the mined Bitcoins are given to investors who had millions invested in Celsius. There is no certainty on what will happen. So, we must not expect too much from the company. They are the same ones who want to fraud their investors, saying that the user’s crypto belongs to them.
Celsius doesn’t want to pay back retail investors
The company claimed that its terms and conditions clearly stated that once someone deposits their crypto, it becomes Celsius’s property. They can do anything they want with that crypto. So, they should not be responsible for paying back retail investors. Now, the court hasn’t said anything on the subject, but this shows the sad reality of such platforms. I am quite sure that even if Celsius manages to get the BTC mining firm up and running, retail investors will be the last to get their funds back. That is the case if Celsius is ordered to do so by the court.
What are your thoughts as Celsius says it will mine Bitcoin to pay back its debt? And what do you think about the hidden terms and conditions of the platform? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Tesla sells 75% of its Bitcoin in Q2 2022: Elon’s true side revealed!
