Crypto Bank Misses $1B, Shuts Down – “I Managed to Ruin My Life”

Cryptocurrencies like Bitcoin are a risky venture. A large company has now declared bankruptcy. It is about billions of euros that are managed by this company.

Crypto currencies are currently in crisis. The values ​​of Bitcoin and Co are falling sharply and many users are now selling their mining equipment: Former crypto miners are flooding the market with cheap graphics card offers and are still selling graphics cards below the recommended retail price.

Now the crisis has also caught a large company that is officially said to manage billions of dollars worth of cryptocurrencies. Many users are now worried about their fortune.

Companies are missing a billion euros, users can no longer access their assets

What kind of company is this? Celsius Network was a type of lending company: you could take out a loan and deposit cryptocurrencies as collateral.

In addition, users could deposit various digital currencies into their wallet and then received percentage returns.

Many trusted this company and took advantage of the opportunities. At least that’s what the assets Celsius Network manages show. As of May 2022, the firm had more than $12 billion under management.

What happened now? The company had to file for bankruptcy in July 2022. The crypto trading and lending company has $5.5 billion in liabilities but $4.31 billion in assets on its records.

The equivalent of over a billion euros is missing. And this announcement brings great despair to many users who trusted Celsius Network. Because many users had probably invested money here.

A few weeks earlier, Celsius Network had blocked users’ accounts so that no one could withdraw their money. Therefore, nobody can currently access their assets that are on the servers and accounts.

“My savings are gone and I managed to ruin my life.”

These are the reactions to bankruptcy: Both in the official Celsius Network subreddit and in other threads, users are discussing the company’s bankruptcy.

Many people are appalled and shocked because no one is sure what will happen to their money. A user writes down reddit: “My savings are gone and I managed to ruin my life.”

Some also complain about the company’s lack of transparency. The company still sends emails about bonus payments every week. Others complain that they only found out about the bankruptcy by accident (via reddit.com):

I can’t believe I got it [den Bankrott] found out from a damn reddit thread and not from the company…

Other people have already lost tons of cryptocurrency as well. For example, one game relied on so-called NFTs to give people an incentive. The game shared some similarities with the Pokémon franchise: the focus is on trading and breeding creatures. But now hackers captured cryptocurrency worth 550 million euros:

Hackers steal €550 million from NFT game – Pokemon-like game was unfortunately too successful