Celsius won $4.2B worth of customers funds

[docxdrl]

Once the bankruptcy status has been granted to celsius, no customer will get their money back. They will have to liquidate all their assets and their creditors (read financial institutions) will get the proceeds. Once the creditors are paid back, the customers will get a refund if anything remains in their account after all these payments. Bankruptcy essentially means that the retail creditors will lose their money.

So all the best!

is there no way possible whatsoever for the customer to get back their money?

[FanEagle]

The sad thing is that crypto became so big that the amounts we are talking about are huge as well, like 4 billion dollars? When mt.gox happened it wasn't anywhere near this and that is the biggest crypto scam that ever happened, it was just hundreds of millions of dollars that was stolen, of course when we look at it right now it's a lot more but when it happened that was the price.

Nowadays the smallest news that we are discussing here is 4 billion dollars, and that's not really hurting the market anymore neither. All in all, I have to say that whatever this news is, right or wrong, true or false, deserved or not, it's still just a lot of money.

[South Park]

The sad thing is that crypto became so big that the amounts we are talking about are huge as well, like 4 billion dollars? When mt.gox happened it wasn't anywhere near this and that is the biggest crypto scam that ever happened, it was just hundreds of millions of dollars that was stolen, of course when we look at it right now it's a lot more but when it happened that was the price.

Nowadays the smallest news that we are discussing here is 4 billion dollars, and that's not really hurting the market anymore neither. All in all, I have to say that whatever this news is, right or wrong, true or false, deserved or not, it's still just a lot of money.

And the numbers will keep raising as not only the price of bitcoin will keep growing over the years, but it is my impression that each new generation of newbies we watch becoming part of the market are less and less interested on what is behind bitcoin and its reason to exist and they only want to obtain profits, which means companies like Celsius will keep appearing, thriving and crashing in an endless cycle from which there is no escape since I doubt most of those newbies will ever learn to stay away from these kind of projects.

[uneng]

is there no way possible whatsoever for the customer to get back their money?

No. Scammers have permission from the judge to continue using depositors' funds to run their operations. Their strategy is to milk most money as possible paying their own wages as company's employees, so once the deadline for the recovery is over, there will be only pennies left for creditors. If the judge had decided the opposite then it would have been possible to retrieve funds partially. But that is not the case, so next time better to avoid these platforms.

[South Park]

is there no way possible whatsoever for the customer to get back their money?

No. Scammers have permission from the judge to continue using depositors' funds to run their operations. Their strategy is to milk most money as possible paying their own wages as company's employees, so once the deadline for the recovery is over, there will be only pennies left for creditors. If the judge had decided the opposite then it would have been possible to retrieve funds partially. But that is not the case, so next time better to avoid these platforms.

The users of those platforms really need to read what kind of terms they are accepting when they sign up to them, they basically gave their funds away to Celsius and while it is completely unfair, the law only cares about what is legal and not about the unfairness of the situation, and I hope anyone which has not suffered because of something similar looks at this example and learns from it, as this is much cheaper than the alternative.

[uneng]

is there no way possible whatsoever for the customer to get back their money?

No. Scammers have permission from the judge to continue using depositors' funds to run their operations. Their strategy is to milk most money as possible paying their own wages as company's employees, so once the deadline for the recovery is over, there will be only pennies left for creditors. If the judge had decided the opposite then it would have been possible to retrieve funds partially. But that is not the case, so next time better to avoid these platforms.

The users of those platforms really need to read what kind of terms they are accepting when they sign up to them, they basically gave their funds away to Celsius and while it is completely unfair, the law only cares about what is legal and not about the unfairness of the situation, and I hope anyone which has not suffered because of something similar looks at this example and learns from it, as this is much cheaper than the alternative.

And that is not an exclusivity of Celsius. Any crypto lending platform or exchange going bankrupt would lead investors and customers (unsecured creditors) to the same infamous fate. There isn't any insurance program which covers users from crypto platforms in case of bankruptcies, with the exception of Nexo, maybe, which claims to be insured up to 250$ million dollars.

However, before this scandal I thought these platforms were safe to invest, since they are regulated businesses, therefore the justice would stay by the side of the victims. After all, it's also a good lesson that we shouldn't act expecting the law forces are going to save our skin in case something goes wrong. In fact, it's more likely the opposite happens.

[South Park]

The users of those platforms really need to read what kind of terms they are accepting when they sign up to them, they basically gave their funds away to Celsius and while it is completely unfair, the law only cares about what is legal and not about the unfairness of the situation, and I hope anyone which has not suffered because of something similar looks at this example and learns from it, as this is much cheaper than the alternative.

And that is not an exclusivity of Celsius. Any crypto lending platform or exchange going bankrupt would lead investors and customers (unsecured creditors) to the same infamous fate. There isn't any insurance program which covers users from crypto platforms in case of bankruptcies, with the exception of Nexo, maybe, which claims to be insured up to 250$ million dollars.

However, before this scandal I thought these platforms were safe to invest, since they are regulated businesses, therefore the justice would stay by the side of the victims. After all, it's also a good lesson that we shouldn't act expecting the law forces are going to save our skin in case something goes wrong. In fact, it's more likely the opposite happens.

It is easy to think justice would prevail but anyone who has at some point had to deal with the law knows this is not the truth, most of the time the one which wins is the one with the best and most expensive lawyers and the one which could force others to sign an advantageous contract for himself, and it does not take a genius to understand Celsius is the one which had all advantages since the beginning, even if at the same time Celsius is the one at fault here.

[serjent05]

GM crypto fam,

As I was doing my regular Friday "catching up" routine. I came across this story, and I'm not sure I understand everything.

So, a court declared that $4.2B worth of customer deposits belong to Celsius, allowing the company to use the digital assets in bankruptcy proceedings. But what happens to the customers now? Will they ever get repaid?

Source:

https://app.getresponse.com/view.html?x=a62b&m=BVxpy5&mc=9I&s=BtgXWnG&u=QcLhh&z=ESSrIqt&

https://www.coindesk.com/policy/2023/01/05/celsius-earn-assets-belong-to-bankrupt-crypto-lender-judge-rules/

This is a very disgusting strategy done by Celsius's owner making them change their terms and condition according to their favor.  I hope victims file an appeal to reverse the decision and be granted and make these scammers pay for their fraud attempts.  I also think the judge siding with Celsius is taken care of.  I wonder how much that judge cut on the fund.  I hope I am wrong but I the idea of the possibility that the judge had been bought keeps on entering my mind.

[mich]

Well good news for creditors that is owed money from Celsius. It is granted permission from the judge to convert altcoins for Bitcoin and Ethereum.   
They did start this converting on this last weekend.  This is part of new owners Fahrenheit deal with the sec.
https://www.theblock.co/post/237887/celsius-moves-70-million-of-altcoins-following-ruling-it-can-swap-to-bitcoin-and-ether

[siniminomorocomunisakito]

Once the bankruptcy status has been granted to celsius, no customer will get their money back. They will have to liquidate all their assets and their creditors (read financial institutions) will get the proceeds. Once the creditors are paid back, the customers will get a refund if anything remains in their account after all these payments. Bankruptcy essentially means that the retail creditors will lose their money.

So all the best!

is there no way possible whatsoever for the customer to get back their money?

This question may be difficult for me to answer. It's a policy on a platform, of course, but if there is a special notice there is an opportunity to withdraw, if not, well, be prepared to lose your investment. Yes. If the condition is like that it is sad and makes us regret and blame ourselves. So we have to be selective in placing the money we collect to invest in a trading platform.

[mich]

Well there is some more good news for investors who are still owed money from Celsius. They have agreed to take $25 Million from GK8 and give $24 Million for legal expenses, and $1 Million to be given to the group.

But still some people do not think the $24 Million will cover total legal expenses. And the $1 Million is unfair. https://www.coindesk.com/business/2023/07/18/celsius-estate-settles-with-series-b-holders-over-proceeds-of-gk8-sale