Introduction
I was initially excited about Celsius Network, a seemingly solid and reputable company that promised security, transparency, and a proven track record. However, the recent Chapter 11 bankruptcy has uncovered a dark truth: Celsius Network was nothing but a giant scam.
The Chapter 11 Bankruptcy
On January 30th, a court-ordered examiner was expected to release a report addressing whether bankrupt crypto firm Celsius Network operated as a Ponzi scheme. The founder, Alex Mashinsky, is already facing fraud allegations, and the report could add to the pressure on him.
U.S. Bankruptcy Judge Martin Glenn, who is overseeing the crypto lending platform's Chapter 11 case, appointed former prosecutor Shoba Pillay as an independent examiner in September. She was tasked with investigating Celsius customers' allegations that the company operated as a Ponzi scheme and reporting on the company's handling of cryptocurrency deposits.
Celsius filed for Chapter 11 protection from creditors last July in Manhattan after freezing customer withdrawals from its platform. It listed a $1.19 billion deficit on its balance sheet.
Lessons Learned from the Celsius Network Debacle
The fall of Celsius Network has taught me valuable lessons about anything in crypto:
Don't count your chickens before they hatch: The money is only real when it hits your bank account.
Don't trust any third party in crypto. Even when everything looks and smells like roses, it can all be but a giant pile of poop wrapped in Christmas wrapping
Conclusion
I regret promoting Celsius Network. Lots of people are hurting because people promoted that business as one of the best option for yield. It definitely a hard lesson to learn.