Celsius is one of the largest crypto lending platforms and it’s been around three weeks since Celsius Network LLC halted the withdrawals of its customers. Following this, most customer wonders whether they will get their money back. The company has frozen all the withdrawals after using a myriad of failed decentralized finance strategies. The Badger DAO attack cost the corporation $22 million and 38,000 ETH.
Already, the cryptocurrency market has faced the last month’s LUNA collapse and has shed around $180 billion off its market cap. Alla Driksne, a coach who trains cooking online and who has deposited on the Celsius platform says, “since it is such a huge company and there are so many people that trusted them, somewhere in the back of my head, I am hoping maybe there is a small, small chance of not losing everything”.
Customers Of Celsius Are Losing Hope For Their Locked-Up Crypto
Following the withdrawal frozen by Celsius, other four crypto firms such as Babel Finance, CoinFlex, Voyager Digital Ltd, and Finblox also noticed their customers that they cannot withdraw their money from the platform. The managing team at Celsius hasn’t responded to any comments regarding their withdrawal freezing decision. Authorities and regulators in Texas, Alabama, Kentucky, New Jersey, and Washington have been investigating the decision.
Last Thursday, the Celsius Network wrote in a blog post, “Celsius continues to take important steps to preserve and protect assets and explore options available to use. Celsius team members are proud of our community and client participation, and we’ll continue to share information as needed”.
Investors in the cryptocurrency market were concerned following the collapse of Luna and TerraUSD. The entire crypto industry has fallen from $1.7 trillion in May to $872 billion as of last week. Many traders have raised complaints against different crypto lending platforms. John Buzolits, a commercial real-estate broker living in Philadelphia has opened an account in Celsius and owns six Bitcoins. “Six bitcoins are a large amount of my retirement, therefore it’s causing me anxiety. Now I have to start over and rebuild from zero”.
Celsius was like a bank in the crypto market with decentralized interest income and a lending platform. As per reports, following the freeze on withdrawals, it is rumored to be insolvent. Since 2018, the company has lent $8 billion to clients and manages $12 billion. Along with Celsius, the insolvency rumor has been heard from crypto hedge fund Three Arrows Capital.