Then that would insinuate that there is no recovery plan. Exactly who are "your" "insider sources"?
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I spoke with someone who asked to remain anonymous and gave me some details about Mashinsky that aligned with some research I did on him several months ago. Granted, this person could be full of shit but they seemed sincere and knowledgeable. One of the more crazier stories ...
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... is that Celsius actually lost the keys to token valued at several tens of millions of dollars. I went through Celsius' TOS and contract and there were some alarming things in there. I'm curious if anyone who invested money in Celsius actually read that contract.
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Depositers with "earn wallets" and "collateral held in borrow services" are unsecured creditors, depositers in custody wallets is "unclear" wether they are unsecured creditors or not, crypto "secured lenders" may not be in case of chapter 11.
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Interesting. I figured a lack of case law on crypto would make a lot of this nebulous so when the guaranteed lawsuits start, it will be interesting to read up on the judgments to see how this will be interpreted. That's just from the civil side -- I know five state AGs are ...
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Lets pray it doesn't come to chapter 11, even if there is litigation it would only be to the extent that there are funds to recover and suit to be paid to the plaintiff, secured lender or not.
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Right -- you can't get blood from a stone. I'm fairly sure there will be a class action lawsuit over this. The really messy bit is that apparently people's loans are now liquidating unless they put more money into something that may just lock it permanently -- a real shit show.
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If they open up withdrawls there will still be so much liability from that borrow service margin call mess, but celsius TOU states that Collateral from borrow service is a unsecured creditor meaning it belongs to Celsius, and they are under no obligation to allow you to use it.
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Yeah the whole thing is a hot mess. The ironic thing of freezing withdrawals to keep demand away to avert a "bank run" is that you're just kicking the can down the road for when you do re-enable withdrawals. Their business can't survive this (at least I don't think it can).
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The big question is if they'll do the right thing and not try to piss off 2 million users. Well I mean they're already pissed off but if they could pull out 25-35% of their account value, that would be better than nothing. Unfortunately I've heard some people put their life
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savings into Celsius and that is really unfortunate.