Celsius, a leading platform for earning and borrowing digital assets, announced today that it will distribute $3 billion in crypto to its creditors in the next 12 months. This is a significant increase from the $1 billion that Celsius distributed in 2023 and reflects the growing demand and adoption of its services.
Celsius offers its users up to 18% annual interest on their crypto deposits, as well as low-cost loans against their crypto collateral. Celsius claims to have over 10 million users worldwide, and to manage over $30 billion in assets. Celsius also shares 80% of its revenues with its community, in the form of weekly rewards paid in the same currency as the deposit.
Alex Mashinsky, the CEO and founder of Celsius, said: “We are proud to be the first and only platform that distributes billions of dollars in crypto to our loyal customers. We are creating a new financial system that is fair, transparent and inclusive. Our mission is to bring 100 million people into the crypto economy, and we are well on our way to achieving that.”
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Celsius is not the only platform that offers interest and loans on crypto, but it is one of the most popular and trusted ones. Celsius has received multiple awards and recognitions, such as the Best Crypto Wallet of 2020 by FinTech Breakthrough, and the Most Innovative Crypto Company of 2021 by AIBC Summit. Celsius also has a strong security record, with no hacks or losses of funds since its launch in 2018.
Celsius Bankruptcy
Celsius had filed for bankruptcy protection in the US and UK, citing a series of unfortunate events that led to its financial collapse.
The first and most obvious factor was the crypto market crash that occurred in January 2022, wiping out more than 50% of the total market capitalization in a matter of days. Celsius, which had a large exposure to various crypto assets, suffered massive losses as a result of the price drop and the increased volatility.
The platform also faced a surge in withdrawal requests from its users, who wanted to liquidate their holdings and exit the market. Celsius was unable to meet these demands, as it had lent out most of its assets to borrowers and had insufficient liquidity reserves.
The second factor was the regulatory crackdown that followed the market crash, as authorities around the world sought to impose stricter rules and oversight on the crypto industry. Celsius, which operated in a largely unregulated space, was hit with multiple lawsuits and investigations from regulators in different jurisdictions, accusing it of violating securities laws, consumer protection laws, anti-money laundering laws, and tax laws.
Celsius was also accused of operating a Ponzi scheme, as it allegedly paid out interest to its users from new deposits rather than from actual returns on its investments.
The third factor was the internal mismanagement and fraud that plagued Celsius’ operations. According to reports, Celsius’ teammates were involved in several dubious deals and transactions that siphoned off millions of dollars from the platform’s funds.
Mashinsky also allegedly manipulated the platform’s data and metrics to inflate its performance and valuation. Furthermore, Celsius’ security systems were compromised by hackers who stole sensitive user data and funds from the platform’s wallets.
These factors combined to create a perfect storm that brought down Celsius, leaving its users and investors with little hope of recovering their money. Celsius’ bankruptcy is a stark reminder of the risks and challenges that face the crypto industry, especially in times of market turmoil and regulatory uncertainty.
It also highlights the need for more transparency, accountability, and governance in the crypto space, as well as the importance of due diligence and diversification for crypto users and investors.
Celsius is constantly adding new features and benefits to its platform, such as new coins, higher rates, lower fees, and more partnerships. Celsius also has a native token, CEL, which gives holders access to exclusive perks and discounts. CEL is currently ranked among the top 100 cryptocurrencies by market capitalization and has increased by over 1000% in the past year.
Celsius is a platform that empowers its users to earn more from their crypto, while also supporting the growth and development of the crypto industry. By distributing $3 billion in crypto to its creditors, Celsius is demonstrating its commitment and confidence in the future of crypto.
I can’t believe the positive spin you’re putting on Celsius. You have any idea how much money its customers lost because they were flat out lied to? How much were you paid to write this?
This is misinformation. You have no credibility.