Celsius customers take legal action against the company

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“I knew there were risks”says a customer who hasn’t signed his letter. “It seemed like a risk worth taking.” Celsius and its CEO, Alex Mashinsky, have promoted the platform as a safe place for people to deposit their cryptocurrencies at high interest rates while the company lends and invests those deposits.

But when the value of highly volatile cryptocurrencies plummeted – Bitcoin alone has lost 60% of its value since November – the company ran into more trouble, until it blocked withdrawals in mid-June. The company owes its users $ 4.7 billion, according to a court document released this month, and it’s unclear how the case will end.

Posted in an online judicial archive, the letters arrive from all over the world and tell the tragic consequences of the freezing of users’ funds. “From that hardworking single mother in Texas who handles unpaid bills, to the teacher in India who invested all of her life savings in Celsius, I think I can speak for most of us when I say I feel betrayed., ashamed, depressed and angry. ” wrote one of the clients, signing her letter as EL

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Although the letters vary in their level of knowledge of the world of cryptocurrencies – from confessed newbies to those convinced they are risking it all – and the monetary implications range from a few dollars to tens of thousands, almost everyone agrees on one thing.

“I have been a loyal customer of Celsius since 2019 and feel a complete connection with Alex Mashinsky”, writes to a client that AFP has decided not to identify himself to protect his privacy. “Alex explained that Celsius is safer than banks.”

Numerous letters indicate that the CEO’s AMA (Ask Mashinsky Anything) online chats are the main reason for his trust in him and the platform, which until a few days before the funds were frozen was stable.

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A customer who claimed to have blocked $ 32,000 in Celsius cryptocurrency wrote to the judge: “almost at the end, the small investor received guarantees ”.

But things changed quickly and on June 12 Celsius announced the lockdown: “We are making this decision today to allow Celsius to better meet its retirement commitments over time.”

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