1.7 Million Celsius Investors Wanting Help

CNBC headline: Homeless, suicidal, down to last $1,000: Celsius investors beg bankruptcy judge for help

PUBLISHED TUE, AUG 2 20222:21 PM EDTUPDATED TUE, AUG 2 20228:03 PM EDT

https://www.cnbc.com/2022/08/02/celsius-investors-owed-4poin…

At its peak in October 2021, CEO Alex Mashinsky said the crypto lender had $25 billion in assets under management. Now, Celsius is down to $167 million “in cash on hand,” which it says will provide “ample liquidity” to support operations during the restructuring process. Celsius owes its users around $4.7 billion, according to its bankruptcy filing.

That filing also shows that Celsius has more than 100,000 creditors, some of whom lent the platform cash without any collateral to back up the arrangement. The list of its top 50 unsecured creditors includes Sam Bankman-Fried’s trading firm Alameda Research, as well as an investment firm based in the Cayman Islands. Those creditors are likely first in line to get their money back, leaving smaller retail investors holding the bag.

Unlike the traditional banking system, which typically insures customer deposits, there aren’t formal consumer protections in place to safeguard user funds when things go wrong.

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