Celsius a crypto lending platform was a big part of the industry, as many of the customers used their assets to deposit with the company. The crypto lending company promised the customers with high interest rates, which lured the investors to deposit their holdings in Celsius. Celsius as a part of its operations invests these deposits in other funds and companies and used to get interest from the same. When the market crash happened in May, many cryptocurrency institutions ended up in soup. Celsius was one among them.
Celsius had also lent a lot of the deposits to Three AC, a hedge fund company. As the hedge fund company collapsed, Celsius’s debacle started. First the company went on to freeze the accounts of the investors, prohibiting them from withdrawing their funds. The company also went on to hire restructuring attorneys to help the company restructure and get out of the soup. Even that move seem to be failed. After attempting several times, the crypto lending company went on to file for bankruptcy. As the company filed for bankruptcy, many customers of the company exploded and started writing about their experience with the company, requesting the judge, to look into the matters more carefully.
Anger, anguish, anxiety the three A’s that are common among the customers.
Credits: RTC Direct Mailing
Hundreds of letters started pouring in from the customers to the Judge, who was given the responsibility to oversee the bankruptcy filings of Celsius. The letters were filled with people’s experience of Anger, Anguish and Anxiety. According to the court filing the company owed around $4.7 billion to its customers and users.
There were customers from different age group, financial condition and many different variables suffering from the three A’s mentioned above. The letters revealed many examples of the pain that the customers were facing. Some of the examples are, like a single mom who was struggling with past due bills in Texas, a teacher from India losing his hard-earned life savings and many such examples concluded the pathetic condition of the customers.
Many of the letters were directed towards CEO’s AMA (Ask Mashinsky Anything), which was held online, few days before the accounts were froze. The campaign was basically run to keep the customers in a good space and to make them believe that the company was not in danger.
Writer’s Report:
As we read more and more experiences of people about the loss of their assets and their sufferings it is hard to digest the fact that a big crypto institution did not have the correct measures to return the investments back in a case of debacle. Some of the customers, went to the extent of depression, where they were planning to commit suicide, which surely is one of the most unwanted involvement Celsius wants at this time.
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