Wow, Celsius did a presentation on the first day of the bankruptcy proceedings[1].<p>Quite some interesting details.<p>Here's an overview from that presentation.<p>Total Assets reduced by $17.8Bn since March 30, 2022:<p><pre><code> User withdrawals: $1.9Bn
Decline in market value of holdings: $12.3Bn
Crypto liquidated by third parties (Tether): $0.9Bn
Crypto lost from investments: $0.1Bn
Loans: $1.9Bn due to loan redemption and liquidation
</code></pre>
And look at that corporate structure: <a href="https://imgur.com/a/0snAmoD" rel="nofollow">https://imgur.com/a/0snAmoD</a> I've come to realise it's typical of these new age firms to have such mind-bending structure.<p>[1] <a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174907182280000000001.pdf" rel="nofollow">https://cases.stretto.com/public/x191/11749/PLEADINGS/117490...</a>
Nobody could have predicted that a company who paid out more than they made in interest would default.<p>Honestly feel like this crash didn't cut deep enough, we are due for another speculative bubble in less than 2 years IMO.
Centralised exchanges are bad, people should have used proper decentralised and secure ones like Ronin, or Wormhole, or Poly, or Harmony, or Nomad, or...
I wonder why they chose to declare bankruptcy in Vermont even though the first sentence clearly states "unlicensed in Vermont"?<p>It still appalls me that people were willing to risk granting custody to all of their crypto for a meager 8% return - absolutely wild.
I feel bad for the users that were left holding the bag. I put a good amount of money in the YC backed StableGains (Terra) just to watch it evaporate overnight. The investors and founders should feel deeply ashamed for selling these platforms as legitimate savings accounts. The fact that these platforms were backed and promoted by well know VCs/incubators, such as Y Combinator, is utterly appalling.
And yet the website is still functional and apparently still taking deposits, notwithstanding the easily-ignored popup and banner saying that withdrawals are suspended.<p><a href="https://celsius.network" rel="nofollow">https://celsius.network</a>
Predictable from the beginning.<p>Sane setup:<p>1) Auto Direct deposit % of paycheck into something like Swan Bitcoin<p>2) Daily auto DCA using direct deposit balance<p>4) Weekly auto withdrawal to cold storage<p>Set it and forget it. Trust minimized. Sleep soundly.<p>Mashinsky is and always has been a huckster.