Excerpts from letters to the judge in the Celsius Network bankruptcy case
by Molly White on
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Content warning: Discussions of suicide.
People with funds locked in Celsius Network have been sending letters to the judge presiding over the Chapter 11 bankruptcy case. These are excerpts from those letters.
It’s important to understand that schemes like this in the cryptocurrency industry are hurting real people who are often suffering losses they can’t afford. Regardless of what you may believe about individuals’ decisions to put significant amounts of money into Celsius, blame lies with the executives creating and running these companies and with the U.S. legal and regulatory system for allowing companies like this to operate.
The goal of highlighting these excerpts is to illustrate this, and shed some light on how people are convinced to put their money into projects like Celsius. Celsius may have been one of the first companies to collapse in the 2022 crypto crash, but it is hardly unique.
All case filings can be viewed on Stretto. Individual letters are linked alongside their excerpts. I have published similar excerpts on Twitter, and will be continuing to update that thread and this post as new letters are entered. New letters will go at the top of this post, which is in reverse order based on docket number.
If anyone is looking to submit a letter of their own, this Reddit post seems to explain how.
On June 12, 2022, the cryptocurrency lending firm Celsius Network suspended customer withdrawals, swaps, and transfers. On July 13, the company filed for Chapter 11 bankruptcy. Users have been unable to withdraw crypto stored in Celsius accounts. Users with loans open are still having to add collateral to maintain their loans, despite not knowing if they’ll be able to retrieve their collateral. Some have been forcibly liquidated even though they intended to add collateral to open loans, due to needing to go through the overloaded Celsius support team.
Celsius offered both “Earn” and “Custody” accounts. With Earn accounts, users received a percentage rate of return either in the $CEL token or in the same tokens they were holding. In April 2022, Celsius stopped allowing non-accredited investors in the United States to keep Earn accounts, in order to comply with U.S. regulations. With Custody accounts, coins are stored and could be transferred, swapped, or used for loan collateral, but did not accumulate the rewards of the Earn accounts.
Doc 708, filed August 2, 2022:
I am a 65 year old retired man writing this letter in the hopes that justice will be served for myself and many others who have lost their investments. The majority of my life savings were deposited in Celsius with the understanding my funds were secure. The rest of my life has been drastically changed because of of the misinformation and outright deception by Celsius CEO Alex Mashinsky.
I have worked since I was 15 years old, and have saved my earnings, sacrificing and pinching pennies for the last 50 years. Now, upon retirement I have found that most of my savings are being withheld from me by Celsius- just two weeks after my new marriage! Just as our honeymoon began with high hopes for the future, news came that my funds had been frozen. Since that fateful day (June 12, 2022) I have felt devastated and betrayed. The outcome of this case will have enormous long-term consequences for me, my family and my overall state of mind.
Doc 703, filed August 24, 2022:
I’m a Celsius customer with a total of 4.47 BTC [~$90,000 on date of filing], 53 ETH[~$84,000 on date of filing], and several other alt coins on the platform. I worked over 4 years to build up that amount and I trusted Alex with my lifesavings. As I’m sure you’ve heard from numerous customers, Alex had weekly AMAs and just days before freezing customer accounts, advised customers that everything was fine and there should be no problems withdrawing money. Telling customers, they were not making risky trades and that Celsius was safer than a bank account. This ended up not being the truth. As a licensed police officer who helps victims of fraud, I don’t see how this is any different than what happened with Enron.
Doc 698, filed August 4, 2022:
I’m glad I didn’t put everything in Celsius but with what I did I stand to lose almost half of my retirement savings.
Doc 661, filed August 25, 2022:
Between September and November, 2021 I put up 8.16 BTC as collateral for loans totaling $75,000. I made these informed financial decisions based on several factors, including social media messaging which I will highlight some examples of below…
For my sake, I have a son who was born this year, and have been living under very low income due to Chinese lockdown policies. Our only way of weathering the storm was taking out loans from Celsius, and now that the principle is nearly gone my wife and I are under and immense burden to make a living and take care of our baby.
Doc 659, filed August 31, 2022:
Currently, I have about $3,500 worth of BTC in my Celsius account. I will be okay and it won’t break me. But, I encouraged my father-in-law and mother to submit crypto to Celsius. They have a total of about $7,500 worth of crypto locked in Celsius. That is what really bothers me… I led my relatives down this path and I will pay them back every cent. But, this is truly a dishonest thing done by Alex and the Celsius team. They have ruined many lives and I pray to God that nobody has committed suicide over this.
Doc 654, filed August 2, 2022:
I am a customer who unfortunately trusted Celsius. I have sold all my stocks, withdrew all my savings and refinance my house to invest in Celsius for the future of my family and my own. In many interviews and articles, Alex consistently ensured and convinced everyone that Celsius was a transparent and legitimate option for long term life investments. Constantly advertising themselves to be a superior options to banks, this misdirection has caused myself and many others to befall a serious financial crisis in the middle of this economic downturn.
Doc 653, filed August 3, 2022:
I am a 69yo, widow, who deposited my crypto into Celsius. BTC 4 [~$91,300 on date of filing], Eth 15 [~$24,300 on date of filing], Polygon 2200 [~$2,000 on date of filing], etc., I understood the risk that the value could go down. The volatility of crypto currency is apparent. I didn’t sign up to be scammed, in a structured Ponzi scheme. I will never be able to accumulate any wealth at my age, I’m old. I will have to go back to work, if I can find work, if I can manage my health to be able to work. I cannot survive on $1500 a month social security check. The importance of this investment, would bridge the gap in my income for survival in high inflation and recession. The devastation to my life situation is irrepairable, its despair, hopelessness, its failure, a slow death, that eats at you every minute of every day. It takes your heart, mind, soul and body. I have become a shell of a person and obsess on how to fix it. Maybe I should go to the southern border and get a job. It’s crazy, I have never crossed to the dark side, but desperation can make you do and think strange things, especially when you are alone and in despair.
Doc 652, filed July 26, 2022:
Some of the Investors who invested with Celsius are the private-equity firms WestCap and the Canadian public-pension giant CDPQ which is one of the largest Pension Funds located in Montreal, Quebec Canada. CDPQ is valued at over $420 Billion dollars and has been in operation since 1965.
Seeing that companies of this magnitude invested with Celsius gave me the indication that Celsius is a good safe investment. I say this because these companies went through an extensive due diligence process to ensure that Celsius’s books are what they claim them to be and that their business model is sound in order to ensure that they would be given a greater and better return than investing elsewhere and the risk level would be extremely low as per what was being preached by Celsius. These investors had access to company records, reports, balance sheets…that the average customer like myself would never have access to. Upon completion of their due diligence process CDPQ investied $150 Million dollars with Celsius which would be a good indication that Celsius is what it claims to have been or so they mislead everyone to believe. Alex Mashinsky did an interview with CNBC on April 13, 2022 where he mentioned that they just finished a $750 million dollar round of funding and how Celsius is fully transparent. These investors went through a thorough due diligence process and everything is what Celsius claims it to be.
I would like to provide you with an example of how some large Investors perform their due diligence process. There are a few Real Estate Moguls that I follow on Youtube by the names of Grant Cardone and Ben Mallah. Grant Cardone has a Real Estate portfolios worth about $3 Billion and Ben Mallah’s is around $250 million dollars. When Grant or Ben are looking to acquire Real Estate properties their “Modo” is that they let the banks do their due diligence process for them. …
How I came about to investing into Celsius over traditional investing options. I have a 22 month old daughter, my first born child, and with the money we received from her first birthday, Christmas, Easter and other holidays we had it sitting in a bank account and decided that instead of having it sit gaining 0% interest we should invest it for her schooling so when the time comes she has enough to afford it. We had appointments with a few banks and other fund managers on different types of investments we could put it in like government funding programs and so on and the rate that we would receive. Now some of these investments had restrictions on when the money could be taken out and for what purposes and any penalties that went along with that. I then came across Celsius and as I mentioned above seen it as a great investment and a much better one with no penalties for early withdrawal or restrictions on what the money could be used for. So based on my overall assessment of Celsius we decided to invest her money not knowing that we were being drawn into a “Ponzi” scheme if I can use that term. I am torn because the amount of money that I have invested is not something I can recoup back from working and saving especially with the economic situation we are all facing right now.
Doc 650, filed August 25, 2022:
First a little about me, I am an almost 50 year old laborer with a high school education working in a small shop in Salt Lake City. I have been scrimping and saving for over 10 years now trying to plan and prepare for some semblance of a retirement. During that time I was able to save approximately $165,000 which cost me much sacrifice and toil.
I do not and have never owned my own home, I do not own a car, I shop at second hand stores to save money. I use the public transit system and a bicycle to commute. Just to give an idea of my extreme efforts to secure my future.
After I learned about Bitcoin, crypto and eventually Celsius I became a real believer. This looked to me my best and possibly only shot at becoming a homeowner and retiree. So, I put some BTC and ETH in Celsius and began earning rewards, it was the first and only time I had ever experienced passive income. I went all in … 100% of my savings followed by everything I had left over after each check.
Once I started watching the AMAs (ask me anything) I became even more sold on Alex’s ideas and the Celsius mission. Told family and friends, convinced some coworkers to open accounts at Celsius. It was working and getting better all the time. Or so it seemed.
As I type this letter my $165K investment is worth approximately $240K! More money than anyone in my family has ever had. At the top of the market my account exceeded $750K! Today it all seems so unreal and I lament my ignorance in all this.
It’s very somber for me to look at my account knowing that I no longer have access to any of my savings and to hear all the heart wrenching stories like mine and worse.
All this to say, I was fooled!… tricked by Alex in his AMAs where he assured me that my crypto was safe, safer than if it were held in a bank.
Doc 648, filed August 26, 2022:
I am writing to you in regards to the Celsius Network bankruptcy. I am 70 years old, retired and living on social security. In 2020 I opened an account with Celsius Network and deposited my Bitcoin and Etheiium into this account. It was my understanding that in return for depositing my coins with Celsius I would earn a certain percentage, paid out weekly in kind to my account. …
Loosing access to my funds has taken a toll on me physically and mentally. Your Honor, I have worked hard all my life and it has taken me years to save this money. I don’t understand how this can be allowed to happen. Celsius Network was operating in New York and New Jersey which are under SEC rulings. The SEC has been so stringent regarding cryptocurrency regulations yet this was allowed to happen.
Doc 646, filed August 31, 2022:
I have a mid-six figure cash amount of cryptocurrency ($401,540.63 plus $231,518.35 collateral minus $150,000.00 loan - at today’s prices) stored on the Celsius wallet along with a $150,000.00 USDC loan secured by 10.88 Bitcoin as collateral. …
The first issue is regarding my loan. After my account was frozen, Celsius began sending me emails that my collateral is close to being liquidated and that I need to send in $150,000.00 in either cash or USDC to payoff the loan so that my Bitcoin would not be liquidated. They told me that I could not use any cryptocurrency that I had on my account to pay the loan (because funds were frozen) and that I needed to send in fresh funds. I did not have $150,000.00 liquid, so I borrowed the money from my brother. He wired me $150,000.00 and I uploaded the funds to Coinbase to convert the funds to USDC to create a trail. Coinbase held the USDC for six days, then I was able to release the USDC to Celsius. During the six day waiting period, I was in communication with Celsius and they told me that there is a note on my account that the funds are on the way and my collateral would not be liquidated. Once the USDC arrived in my Celsius wallet, I was told that I was not close to liquidation of my collateral. Bitcoin was over $23,000.00 and my liquidation price was $17,223.12. I then asked for my USDC to be returned, since I didn’t need to pay off the loan, and they told me that all transfers were frozen. I explained how my situation was different and then Celsius went silent. …
Every week they would be “bragging” how Celsius was growing and opening offices throughout the world, hiring top financial and technical minds (who they introduced in the AMAs) and how they were in desperate need of more engineers, etc. to handle their growth. They had a huge presence at this years Bitcoin Conference in Miami plus had a tremendous afterparty when the Bitcoin Conference was completed. It all sounded and seemed amazing. The “NEW WAY TO BANK”. It now seems to be nothing but a Ponzi scheme where management gambled our investments away on risky cryptocurrency coins like LUNA along with derivatives, etc. and lost their shirts… our shirts. They had no right to do that. It is a criminal act.
In these AMA chats, Alex Machinsky confidently described how “safe” our funds/property were in our Celsius wallets and that Celsius could immediately liquidate all funds/property to customers if necessary. That was an out and out lie and if every dollar is not returned to all customers, he should be criminally prosecuted for running a Ponzi scheme and I would be very happy to testify against him. If I don’t receive my funds/property back, he will have destroyed my retirement.
I am 61 years old and this is a tremendous chunk of my retirement.
Doc 644, filed August 22, 2022:
I have 21 small loans with Celsius which I have listed below. … Like many others, I admired [Mashinsky’s] goal to help the ‘little guy’ so I deposited all my crypto funds I had amassed over several years of hard work. …
As many others who believed in Celsius and Mr. Mashinsky’s vision, I placed my trust in his words. Being a former housewife with very little social security coming to me, I worked for several years volunteering for overtime on my job to gain additional money to invest in cryptocurrencies. In hopes of having a retirement nest egg, I invested every portion of my income beyond living expenses. I trusted that Celsius was a safe place to store and protect my future retirement money. To now find out that my assets, which I worked so hard for over the past few years, may be lost due to mismanagement is devastating and like so many others, I often cannot sleep at night worrying how I will survive in the future.
Doc 623, filed August 18, 2022:
I am a beneficial owner of two Celsius accounts, one in my name … and one in the name of an LLC I set up for my family’s benefit… I am a US citizen and an accredited investor. I have never borrowed from Celsius. My funds were deployed on Celsius to earn yield. At the time Celsius paused withdrawals in mid-June, the total value across both accounts, expressed in US Dollar terms, was approximately $2,500,000. The bulk of the value is held in Bitcoin (BTC): I have about 100 BTC across the two Celsius accounts. Some Ethereum (ETH) and other assets make up the remainder.
In my day-to-day life, I am a technology and life sciences entrepreneur and investor. I attended Harvard Law School, where I have since taught for some years in the fields of privacy and venture capital. After law school, I clerked for Chief Judge Danny J. Boggs of the Sixth Circuit Court of Appeals in the 2005-2006 term, but I am not a lawyer; I never took the bar, as my mother reminded me many times. …
By now you will be well aware that Mr. Mashinsky represented many times over the years, in public statements such as webinars, that Celsius was in a position of excellent financial health. You may also be interested to know that he made similar representations privately. For example, I sent him an email in June 2021 asking “Of course I read the rumors that Celsius has been ‘endlessly rehypothecating.’ Please tell me (us): are we safe with Celsius? You guys solid? Please give us a good, clear signal.” He replied the next day saying “Yes you are safe. We are profitable and have no losses.”
Doc 611, filed August 25, 2022:
I am writing this amicus letter as an expert in the cryptocurrency space, with nearly a decade of experience in the technology and criminality that infests it. …
I hold no cryptocurrencies and do not have any economic interest in the Celsius bankruptcy proceedings.
However, I can’t stand idly by when there appears to be a significant deception being perpetrated on the court by the management of Celsius. The cryptocurrency lending/borrowing side is clearly insolvent and quite possibly an explicit Ponzi scheme (and certainly an investor in major and obvious Ponzi schemes like the Anchor protocol).
In an attempt to postpone liquidation, Celsius has tried to claim to the court that their cryptocurrency mining business has the potential to be substantially profitable. Unfortunately Celsius’s own filings and basic economic analysis of the cryptocurrency mining space shows this, at best, to be wishful thinking. And, at worst, a fraud on the court.
Doc 575, filed August 22, 2022:
I live outside the US, in The Netherlands. I have put a part of my saved money in crypto at Celcius, because it was presented to us as a real save haven - “Unbank yourself”. Same for some family members and friends. However, it seems we were mislead, and all that was promised is not true. Can you please help us in getting our crypto back? Although for some people it seems not much, for us it is. It cannot happen that Celcius management will get their bonuses , paid from our saved money….
Doc 573, filed July 29, 2022:
I currently have my retirement account valued at $3MM USD tied up as collateral on a 1.15MM USDC Loan, which Celsius is requiring repayment as per the contract term. However, I fear that Celsius may try to liquidate my asset if the loan payment is not made, and therefore, I would like to request that Celsius’ demand for loan repayment without their commitment to release collateral be investigated.
Doc 572, filed July 28, 2022:
I have a life savings tied up in Celsius Network which I was hoping to use in the near future in order to place a down payment towards a mortgage. This all appears to be a distant dream given the recent news regarding Celsius Network filing for Chapter 11 Bankruptcy.
Doc 569, filed August 6, 2022:
I am one of the depositors in Celsius I have my life-saving funds currently locked in the platform. I am still feeling confused, having mental trauma and the current Celsius situation has gotten myself into a financial constraint that somewhat changed and restricted my usual day to day life. With that, I am seeking help urgently from you, as I am feeling helpless at this very moment.
Doc 568, filed August 7, 2022:
My name is … of the United Kingdom and only a few month ago was planning my forthcoming retirement. I have been an account holder at Celsius for nearly 3 years.
May I first start by saying it is a difficult task writing this as I feel embarrassed from the predicament I have found myself in. I relocated back to the UK after, over 20 years in abroad, just a few weeks before the Covid pandemic started and lockdown across the UK came into force. With the extreme isolation & lack of any social network I found myself somewhat desperate to change my situation and susceptible to financial advice given by Alex Mashinsky who presented himself as financial genius who has lead several billion dollar companies. He developed his image as a family man and a champion for the Celsius community, a real Robin Hood of our times and mentor to the ordinary folk who what to change their fortunes.
Since December 2018 I have been accumulating Bitcoin and Ethereum. Later investing the remaining capital left over from selling my house a few years earlier. I have hodled through the fluctuations in price as a believer in the principles of Bitcoin and the future it looks to bring. I have been living extremely frugally over the last few years and invested every spare penny I could muster into these assets. Going as far as delaying an operation my partner needs to remove a growing tumour and living in a small rented flat until I reached my goal of being able to afford to at least semi-retire, buy a house and the operation she needs, which all seemed within reach not so long ago.
Having a relatively low paying job and as a single father, for me, investing has been a struggle. To help speed up this process Celsius were offering interest on my crypto assets. Promoted as safer than banks it gave me the opportunity to accumulate where my salary was unable contribute much. Along with a loan to buy more crypto that Alex Mashinsky on his YouTube channel advised was the best way to further grow wealth. I was lead to believe Celsius primarily generated profit from interest made in the lending business, the profits generated would then be paid to the community, the investors, as interest instead of to shareholders at a bank. This made sense to me and as all loans were said to be fully collateralized it appeared to be a safe and ethical business model.
Celsius took my last deposit of approximately 1.6 BTC [~$36,800 on date of filing] early June 22. I scraped this from various other wallets to safeguard the loan I had from getting liquidated after the BTC price dropped suddenly and after another loan (using my Cel tokens) got liquidated, costing me that entire balance. I intended to withdraw other crypto in my account, mainly my ETH and USDC balance, so as not to have all my eggs in one basket and leave me with some funds on hand. However it was late at that moment so to avoid a potential mistake processing a withdrawal when tired, I left that task till the following day. This next day however turned out to be the day they stopped all withdrawals; leaving me in the horrific position of having my entire wealth tied up in one account at Celsius. I am now penniless, with Celsius holding my entire life savings in the form of around 7 BTC [~$160,900], 62 ETH [~$105,000 on date of filing] $7000 USDC and some smaller balances of other crypto tokens. I was close to retiring but instead, now left with nothing other than the meagre salary from the job I was hoping to leave. I have a flight booked to visit my partner after being separated in different countries for the past 2 years, from the covid travel restrictions but now with little money to fund my other travel and accommodation expenses.
I feel betrayed, lied to and left devastated. I have watched my wealth drop from its highs around a year ago which was just a small step from allowing me to semi retire, buy my house and help with my partners operation to absolutely nothing. Sleepless nights, racked with guilt and blaming myself for my stupidity, these last two months have been agonizing.
Doc 566, filed August 1, 2022:
My family has the following funds/Coins in Celsius accounts.
I am writing you to request we should be able to immediately withdraw our assets from Celsius “in-kind” (1 Bitcoin for 1 Bitcoin). My parents are retired since 2016 and have a substantial portion of their savings in Celsius. My dad is 75 years old and my Mother is 69 Years old. They both have major health issues and need funds to take care of medical bills and daily life expenses with soaring inflation in USA. My dad and mother are both accredited investors with Celsius. I believe the Celsius investors and Alex Mashinsky have misled the customers and they now have an obligation to make depositors whole. Many lives have been destroyed by Celsius. Celsius should not be currently paying themselves millions of dollars in payroll.
Doc 564, filed August 1, 2022:
The most recent event of locking our funds has caused immeasurable suffering and pain to many of the depositors and though i cannot share the grievances of all, i, for one, have had to deal with incapacity to fully execute the care required for my aging parents due to the locked funds in my Celsius platform.
It is one of the worst and painful feelings in the world to be strip off the duty (filial piety) to help your loved ones and i hope i would be given the power to resume that again. …
P.S. I have also included some screenshots from my emails with Celsius who have neglected the needs of someone in dire need of help, however little. Their recent actions are more self-serving and have completely neglect of the roles and responsibilities of a company who are sincere in helping their depositors.
Doc 563, filed July 30, 2022:
This is my state of mind, Your Honor : here are pictures of my house that I am renovating alone. I had planned to hire a professional building firm to do this work and enjoy my vacations. However, the situation with Celsius locked all my funds made me less financially confident to make this through professionals. So, I am doing this myself alone with basic tools and equipments at high risk.
I am one of the victims of the Celsius Network case. I have tens of thousands of dollars held on my Celsius Network account.
Doc 560, filed July 28, 2022:
Why on God’s green earth are Mr. Mashinsky, Mr. Goldstein, and Mr. Leon able to take a salary at this point?
I have a small fortune/seven figures in $ deposit on Celsius and before God and country, I ask you to make sure the people who cannot eat or feed their children or are sick and cannot pay their medical bills, get their money before mine. I am willing to wait a year and not see a penny if those people are paid first. If I can do that, why cannot self-proclaimed billionaires and centimillionaires not take a salary for a year? Frankly, is this salary request by “top brass” at Celsius a joke (adjective with a capital F deleted with respect to the court).
Doc 559, filed July 27, 2022:
My life savings are on Celsius (3 Bitcoin [~$68,800 on date of filing] and 10 Ethereum [~$16,400 on date of filing]). It took me years after a ruinous divorce to make the money to purchase my Crypto and a whole year of researching the best place to put it. Like all the others I believed Alex Mashinsky was an honest man. I was deceived.
Doc 558, filed July 26, 2022:
I currently have around $12,000 in value of crypto on Celsius earn account. I’m desperately hoping to regain my investment in the form of cryptocurrency holdings as it’s a scary place to be entering a recession and economic downturn. My ultimate goal was not to enrich myself, but to help elevate my family which includes my wife and one year old son live a better life.
Doc 557, filed July 25, 2022:
My wife and I became members of Celsius in 2020 and along the way we have invested a lot of hard earned money into the Crypto space for Celsius to hold Securely and Safely. We were told by Alex himself thru AMAs that it was safe and accounted for. After hearing about the bankrucpty my heart sank, our hard earned funds were now gone, gone to a company/team that will probably get nothing more than a slap on the wrist.
We need this team to be held Accountable for their lousy actions and high levels of risk with their customers money. My depression has had my family worried, the money was to be used next year for my wifes pregancy bills and for our kids college funds is now gone.
I am requesting we get the complete amount of fund back into our accounts and not some dollar figure from the day of bankrucpty. Please start from the bottom of the totem pole as us small guys need this more than the massive funding companies. This was our SAVINGS/RETIREMENT funds that they had stolen from us. I pray that you will do whats best for the average person trying to make it through life, not just in the US, but world wide!
Doc 556, filed July 25, 2022:
Celsius has kept my funds in a earn account after writing me a emailing me telling that my funds would be in a custody account as I am not accredited investor. Celsius has $45,000 of mine.
I humbly reguest you order Celsius to refund my money as im in a military and my wife had a stroke. We need the money urgently;
Doc 555, filed August 20, 2022:
I am one of the victims ( list of victims - https://blog.mollywhite.net/celsius-letters/ ) who put my retirement funds into Celsius. I have 6 figures in Celsius.
Doc 548, filed August 18, 2022:
I am writing to convey my utter disgust at Alex Mashinsky of Celcius Network. I trusted Celcius as a legitimate bank to hold and invest my crypto. I don’t have that much money, and I put it all in Celcius. The total money I have is USD 10,428.52 coins. I understand that the value of the market and company shares can fluctuate. I want Celcius Network to return my money; they can take the reward they had given me
I understand that I am considered a small investment I gained from working as a regular employee and invested for my son to get to elementary school. The funds I put by trusting Celcius have left me in a position of hardship.
Doc 535, filed August 18, 2022:
I , like many thousands of others it would appear, took [Alex Mashinksy] at his word and unfortunately did not dig into the small print to see what we were actually signing up to. This unfortunately is normal with a retail business with very few, if any, people reading terms of service etc because lending has been around for a long time and you just imagine that all agreements where you post collateral against a loan are standard in nature and you assume you keep title to your assets until the loan is either paid off or you default or get liquidated.
Doc 531, filed August 17, 2022:
As a retail user with two current active loans, I am truly sickened by what has happened. What I thought was the safest outcome has become the biggest financial risk and loss in my life.
Doc 530, filed August 17, 2022:
As we approached the recent bear market I thought this was a safe place to HODL my assets. Shortly before the freeze I decided I wanted completely out of Celsius and started to move my assets into the custody wallet and started to update my wallet addresses so I can deposit my funds to my Exodus wallet for safe keeping. Unfortunately, for me I was a day late and the freeze occurred while I was changing my addresses and so now the majority of my funds are in Custody. The remaining is locked up in a $30,000 loan that I can fulfill, if I can receive my collateral back of 6.18 BTC [~$147,800 on date of filing].
Doc 529, filed July 22, 2022:
I would like to take a moment of your time; I had a personal injury settlement and was in contact with Celsius 7 times prior to me depositing my personal injury funds into their company and purchasing crypto coins. I was assured that Celsius was not only completely safe to hold and purchase coins, they would help produce high interest returns so my family would be able to maintain my health needs. I have been left paralyzed on my right side and my wife has the full-time job of taking care of my personal needs after my accident.
At the time Celsius froze all accounts we only had a few thousand dollars that was not invested with Celsius. We are now in jeopardy of losing our home and everything we own not to mention having money for basic living, food, utilities, and medical care.
Doc 512, filed August 17, 2022:
I am retired and have 50,000 USDC in my Celsius account to help fund my retirement, I rely on these holdings for my daily expenses. I researched USDC before making this decision and it appeared to be a safe way to hold my cash and earn some interest. Even now, this is what you find when you Google “USDC”, note the word “always”.
“Known as a fully-reserved stablecoin, every digital dollar of USDC on the internet is 100% backed by cash and short-dated U.S. treasuries, so that it’s always redeemable 1:1 for U.S. dollars. USDC reserves are held in the custody and management of leading U.S. financial institutions, including BlackRock and BNY Mellon.” …
I do not understand how Celsius USDC can just disappear given safety measures built into USDC by Centre, unless Celsius falsified information.
Doc 504, filed August 15, 2022:
I have over $80,000 (current value) worth of assets on the Celsius platform which I have accumulated over 5 years. These same assets were worth over $150,000 at one point and I believe in the future of crypto assets and expect the value will be even higher. Like everyone I’m just trying to secure my families future as best I can and losing these assets would be devastating. I am not asking for anything more than the return of the assets I have on the platform. I can deal with the value of my assets declining, even to zero, but being defrauded is a different and difficult pill to swallow.
Doc 503, filed August 16, 2022:
I appreciate your attention and that you put your efforts in this case. My letter is brief; just to say that I opened my account and deposited in Celsius only 3 weeks before the withdrawal freeze! I decided to put all my savings of years! …
In those 3 weeks I made $56 before my life savings were frozen. God gave him this challenge to defend ourselves, we are families, we are hard-working and honest people. We don’t deserve to lose everything. I thank you for your time and your reflection in the face of so much pain caused.
Doc 502, filed August 16, 2022:
As of August 16, 2022, 11:15am ET I have a portfolio balance worth roughly $43,000, all of which is frozen within my Celsius earn account.
Like hundreds of other account holders, I am here to express my outrage with Celsius’ deliberate manipulation throughout their messaging on their website, app, marketing campaigns and emails. …
I am lucky that I have other cash and assets to keep me afloat; my life is not by any means ruined. If anything, my financial goals are just delayed. However, it is still difficult to accept this loss and remain optimistic. I sympathize with the hundreds of thousands of other account holders who also have a significant portion of their savings frozen, potentially never to be seen again beyond a nonbusiness bad debt tax right off.
Doc 501, filed August 16, 2022:
I’m a Celsius Lending customer who took out a 4x overcollateralized loan in December, 2021. While I accepted the risk that the value of my collateral might fall, I did not accept the risk that Celsius, through their own actions, might lose my collateral. Now because of their mismanagement we must figure out how to allocate the losses that Celsius incurred.
Doc 496, filed July 26, 2022:
Like many others, I invested my hard earned money with Celsius. My account included the following shares:
I am a very conservative investor and looked long and hard at the options that were available in the marketplace. After researching for two years and spending many hours of watching videos, reading many different business articles about Celsius and Alex Mashinsky, I finally made the decision to invest in Celsius.
It appeared to be a safe investment with a reasonable return. As you can see by investing in USDC, I was still taking the conservative route with some of the investment. As the market declined, I still felt my investment was safe from the reassurances of Mr. Mashinsky.
I am 63 years and approaching retirement. As with many people getting close to retirement, we look for the best return for our money. This investment may not appear to be much, but without my funds back I will have to delay my retirement.
Doc 494, filed July 27, 2022:
I am a Celsius depositor that only use the Earn account to earn interest using the super safe USD coins. I didn’t participate in any other Celsius program I deemed riskier than a simple savings program. I’m just one of the thousands of Celsius depositors who had their hopes to grow their nest egg in a safe place. But the reality is shattered hopes, broken hearts, and nightmares due to miss management, deceit and lies from Celsius and their leadership team.
My personal story is I became a proud US citizen about two years ago. I was full of hope to fulfil my American dream and one important aspect of that dream is financial freedom. Transferring my hard-earned money to Celsius and earn stable interest was one important step I thought to achieve that. I thought I had done enough research about the company and the program, and it should be a safe bet since I didn’t participate in any other riskier programs. But Celsius bankruptcy filing is a huge blow and a rude awakening to my American dream. It has now put me in a financially difficult position. My confidence in US financial system is deeply weakened. I even started doubting why I have spent so many efforts to become a US citizen and is treated like that?
Please do you best to help us small regular folks get what is ours back, my current account position is valued at $86,995.
Doc 493, filed July 28, 2022:
I realized that Celsius may lend the coins out, but was assured that they have enough collateral in kind to cover any defaults. The way they described nothing short of a nuclear attack would jeopardize the assets. And I have not heard that anyone defaulted. So what happened to all the money?
I still don’t understand exactly what happened. How could Celsius just take our monies? And if they loaned it to someone, don’t those people still owe the money? Why can’t they collect the loans and put the money back into our wallets?
Are they still paying the 100’s of employees they have?
I saw something about them wanting to pay their vendors? That doesn’t make sense. Any money coming in should go to restoring the customer wallets.
Doc 490, filed July 28, 2022:
I am a depositor in Celsius Network, have around $30,000 (by current market price) locked at Celsius Network earn program.
Here is my story which I thought might be interesting for the court who are the Celsius depositors.
It is going back to 2019 when I saw the Celsius and Mr.Mashinsky annonces. That time I had around $2,000 of my savings money which I transferred to Celsius Network.
The worst part of my story is here that I asked my father to give his pension saving money to me to put in Celsius. They could get enough value per week to spend their life in a poor country. My father was a factory hard worker and he got burned twice at work in his face and foot and now after the second surgery he is hardly walking.
Of course he does not know about what has happened to his life saving money yet and today I am still working harder to pay them.
Doc 489, filed July 28, 2022:
Hello, im taking a moment to write how I feel about this Celsius incident. I am one of many that have been lied to and got convinced that it was safe parking funds at Celsius. I have had some really tough years in life but now I feel like I have been pushed to the edge. It took a long time for me to save the money I deposited, it means the world to me. Fortunately, I have a job so I will survive but the problem is im so depressed I feel like giving up. My dream is to be a daytrader and I just need all of my HARD earned money to be able to keep pursue this dream of mine and quit my very destructive job. Its just not going to work otherwise.
Are the world really this cruel? Can a person get away ruining so many lives? The amount of suffering this is going to cause if we don’t get our money back is insane. EVERYTHING needs to get back, no bullshit compensation. Alex has to repair this, I don’t care how long it takes. He is just a total psychopath who lacks empathy if he doesn’t work his ass off until the day 100% is payed back. I believe this is on the level of mass murder, I am disgusted!
Doc 488, filed August 15, 2022:
I am writing to you in response to the Chapter 11 Bankruptcy proceedings of Celsius Network. I have been a customer with them since mid 2020. I deposited my Bitcoin and other alt-coins in an account to earn rewards. I decided to deposit with Celsius over other exchanges and lenders because of the CEO, Alex Mashinky’s, vision for his company. He made a lot of compelling points. He made people to believe that Celsius was a safe and viable alternative to a bank with way better interest. The illusion of safety, is what really compelled me to deposit my crypto assets. I thought to myself after watching a few of his AMA’s and videos on YouTube, “What a great guy that really wants to help people safely earn rewards on their crypto currency.” “He is giving that power back to the people to empower themselves to make their own intelligent financial decisions.” ….
I am not a rich person and have about $2,000 worth of Bitcoin, as of todays values. I thought this Bitcoin was safe and accessible. I didn’t realize how the customers funds were being used. I feel lied to and manipulated into believing that Alex had the best interests of his customers in mind by making safe and reasonable decisions with his customers funds.
Doc 487, filed August 1, 2022:
My wife and I have 150k of our savings in Celsius. We are both retired middle class people who thought this was a safe investment based on everything Machinsky represented in his AMA ‘s.
Doc 486, filed August 1, 2022:
I exactly have 0.703176 BTC [~$16,400 on date of filing] held on a Custody wallet so I deeply hope Justice is served and these assets returned to their owners. This situation has caused me a lot of stress, anxiety and embarrassment.
Doc 485, filed August 1, 2022:
This horrible event has truly damaged my life. I can hardly sleep, I’m struggled to pay my bills, and I can’t live a normal life anymore. The anxiety, stress, depression and general sadness has been unreal. I have two young kids who I was trying building up money for. I am having borrow money from friends and sell remaining assets to survive. I could go to into such more detail, but I am sure you get the idea.
Doc 484, filed August 8, 2022:
I am a United States Air Force military member with 22 years of service. I, like many other members, deposited my life and retirement savings into Celsius. I am a conservative investor and for the most part, I was saving my cryptocurrency at home. This was until I was introduced to Celsius and Mr. Alex Mashinsky. I felt reassured that my funds were safe with Celsius. …
I am a long-term holder and investor, not a trader. For this reason, I was not surprised or concerned when Celsius froze all the accounts. I understand the volatility of the crypto market. Unfortunately, the company stop communicating with the stakeholders and started contracting lawyers while keeping the public in the dark. Soon after, information got out about the risky Celsius investment skims and Ponzi like operations.
Doc 481, filed August 5, 2022:
As a Celsius account holder with an initial principal balance of approximately $400,000 , a substantial portion of my family’s life savings, I would like to share my thoughts on the Celsius bankruptcy situation …
It had taken me many years to be convinced enough to move a sizable portion of my family’s savings from mutual funds into crypto. I purchased cryptocurrencies because I was made aware of Celsius Network, where I would have the opportunity to bank my cryptocurrencies somewhere that I could earn weekly interest, credited to my account in-kind, while holding for the long term. After tracking the broad landscape of the crypto world, the institutional investment in it, the tens of billions of dollars Celsius had under management, and the so-called transparency about safety and reserves communicated at every step of the way in Alex Maskinsky’s AMA’s and in Celsius’ correspondence, I finally did it and I was excited to have pulled the trigger.
Doc 480, filed August 4, 2022:
Thank you for taking the time to read the letters of those who trusted Celsius and invested a significant amount of our life savings, our children’s tuition, along with part of our retirement funds into this company. My heart sank when I found out that Celsius filed for bankruptcy and had halted all withdrawals. I am not allowed to access my family’s funds because of reckless decisions made by the leadership at Celsius who is still allowed to pay their employees 100% of their salaries and are even trying to be sure their executives get their bonuses. Their message to the stakeholders is their families matter more than we do and share no liability in this process which is not an amicable solution. Why is that allowed? Because they have a lifestyle to maintain? We all have life commitments and family members to take care of so I am asking the court to proceed without prejudice and ensure that the liability is shared with the leadership team including those with decision making authority at Celsius. I have 11,401.95 in Celsius and my wife has 332.46 and to some it may not seem like much but to us it was a large portion of our family savings allocated to certain financial buckets as stated above. In addition, I needed to access the funds for an emergency and was unable to do so which caused a hardship for my family. This is completely unfair.
Doc 478, filed August 16, 2022:
Outstanding loans currently held (locked) with Celsius;
- $16,000 due on Jul 04 2022 / Collateral locked = 1.368955 BTC (25% LTV @ 1%) [~$33,100 on date of filing]
- $3,660 due on Mar 25 2023 / Collateral locked = 0.332033 BTC (25% LTV @ 1%) [~$8,000]
- $2,000 due on Feb 02 2023 / Collateral locked = 0.208148 BTC (25% LTV @ 1%) [~$5,000]
- $23,000 due on Jan 10 2023 / Collateral locked = 2.168430 BTC (25% LTV @ 1%) [~$52,400]
- $10,000 due on Nov 29 2023 / Collateral locked = 0.703829 BTC (25% LTV @ 1%) [~$17,000]
- $8,300 due on Nov 26 2023 / Collateral locked = 22.648765 ETH (25% LTV @ 1%) [~$43,200 on date of filing]
Forced Liquidations due to Celsius freezing accounts;
- $26,000 liquidated on Jun 18 2022 / Collateral liquidated = 1.41833729 BTC [~$34,300]
- $10,000 liquidated on Jun 18 2022 / Collateral liquidated = 0.54191471 BTC [~$13,100]
- $15,000 liquidated on Jun 18 2022 / Collateral liquidated = 16.49602078 ETH [~$31,500]
- $12,000 liquidated on Jun 13 2022 / Collateral liquidated = 9.33107542 ETH [~$17,800]
Due to the freezing of Celsius accounts on June 12th 2022, the above liquidations were forced upon me as I could not swap, transfer, pay-off or add collateral to protect the loans from liquidation during the market downturn. I had the capital to pay off these loans to release the collateral back into my Earn account, but this was not possible due to the freeze. Outside of the loan collateral I currently have in my Earn account wallet the following remaining assets;
- Bitcoin BTC = 0.412386 [~$10,000]
- Ethereum ETH = 3.106619 [~$5,900]
- Tether USDT = $2,496.94
Sir, I want to honor my obligation of paying back the principal and interest on my loans so that I may receive my collateral back. However, it makes no financial sense to send money to a bankrupt company when it is unknown what will happen to this collateral as it is now part of the Chapter 11 process.
Doc 476, filed August 15, 2022:
I hold a loan with Celsius. At the time that I took out my loan, I posted $2000 worth of a cryptocurrency called Solana to receive a $500 loan. To many, this is a meager sum of money, but to me it was the bulk of what I had been able to save and invest at this point. I took out this small loan as I had been led to believe by Celsius that my hard earned collateral was safe with them. ….
I am not a wealthy person or a mega corporation. My 62 plus Solana are now worth almost $2700 at the current price as I write this. For some, this is a drop in the bucket, for me this is everything.
At the end of the day, I just want Celsius to abide by the deal we made and for both of us to be made whole. Celsius with their $500, and me with my Solana. As we agreed to do.
Doc 461, filed August 15, 2022:
I live in Switzerland and I have most of my money in digital Assets ( Stablecoins and BTC).
I have used Celsius services because it has been told me they were 100% transparent solvent and always available to withdraw.
I am facing a very stressful financial and emotional moment of my life, additionally I have advised Celsius services to my friends and family who consider myself a complete idiot and are facing losses as well.
Doc 458, filed August 15, 2022:
My loan from Celsius was for $52,023. My 4x collateral is currently valued at $188,100 (99 ETH) and was over $250,000 when I initially took out the loan. A day before Celsius halted withdrawals (Saturday June 11) I increased my collateral by $47,600 (34 ETH) to protect any liquidation risk and with the assumption I was dealing with an organization that was practicing an acceptable level of risk management when handling retail funds/loans. This increase in collateral could have been used to pay off the loan a long time ago if I was aware of the mismanagement of funds taking place at Celsius. This is the majority of my life savings, the impact of losing this money would have a profound negative impact to my life and the life of my two kids and partner. With rising living cost and inflation, and no access to these funds, we are already facing hardship.
Doc 439, filed August 12, 2022:
I am a retired American citizen, living in Thailand. I invested three generations family wealth in my life savings with Celsius. Unfortunately, Celsius filed for bankruptcy.
I would like to have my assets returned to me. I turn 70 years old at the end of July 2022. I do not know about lawyers. I could not afford them in this present situation.
Could you please award me my assets and have them returned to me?
Why do I ask for my assets, rather than a dollar value? The reason is: I bought some Bitcoin at around $58,800 per Bitcoin. It went up to $69,000 per Bitcoin. Bitcoin is now around $20,000 per coin. I would rather have my Bitcoins, instead of the present cash value, as I believe the value will appreciate again, once the Bear Market is over and a Bull Market begins again.
Doc 435, filed August 11, 2022:
The lives of 1.8 million people are facing a financial crisis that never should have existed.
The issues we are up against remind many of a “modern Enron” via misrepresented communications and mismanaged regulatory compliance of a financial company, Celsius. …
My creditor stake in Celsius is valued at nearly $110,000. As a professional in digital ledger technology and innovation that drives economic advancement in major companies, I can assure you that the technology that Celsius represents is not what led to its destruction.
Doc 434, filed August 10, 2022:
I think that Celsius should be sold or liquidated. They clearly mismanaged my funds with poor risk management and poor selection of investments. At the very least the management should be replaced.
Doc 422, filed August 10, 2022:
I’m 29 y/o from France. Several years ago, I launched my online business and coaching activity, I had been dreaming about it for several years and had to fight against my parents who were reluctant. I worked hard, more than 10 hours a day during these years to prove to them that I could do it. It paid off and I decided to invest my hard earned money to strengthen my financial independence. I’m thrifty and not a big spender
Last year, I deposited $81,000 in Celsius because all indications were that it was safe and I wanted to start generating income on those savings, rather than buying an apartment or letting that money “sleep” in the bank.
Doc 419, filed August 9, 2022:
I am a 69-year-old Blind retired physician who has put cash I would ordinarily keep in a bank into this platform. They indicated the safety and conservativeness with which they proposed to do business including loans, etc.
I had been a customer of Blockfi and transferred all my holdings to Celsius which turned out to be a very bad decision. They had indicated in some of their calls that Blockfi was in trouble and that they paid higher interest rates on crypto. If I had left my savings on Blockfi I would be in a better position today. Not only that but I also paid income tax on the “Interest” that I “earned” on the platform.
Doc 407, filed August 9, 2022:
The platform has $ 7000 owned by me and I hope you understand. About a year ago, I transferred around $ 7000 USD (most of my savings) in the form of: 0.082224 BTC Bitcoin [~$1,950 on date of filing] (in the “Earn” account) 0.818848 ETH Ethereum [~$1,450 on date of filing] (in the “Earn” account) This is money that I honestly earned by making a lot of sacrifices. The crisis has brought me to my knees! I can’t believe I was foolish enough to believe CEO Alex Mashinsky’s words promising the Celsius Network LLC platform would replace the banks! He set up a great disinformation campaign, everyone believed in the solidity of the project. The bear market has revealed the cards, has revealed the reality. It was all a gamble, they played with our money!
Doc 405, filed August 9, 2022:
My name is Brandon Lawrence. I am writing the letter for the same reason as many, I am one of the little guys. I put my life savings and trust into Celsius and co. Even worse, I took out a margin loan on Robinhood for $50,000 for a Bitcoin at near it’s high, then I sent it to Celsius to offset the monthly margin interest. I also sent a Bitcoin from when I was buying a little bit here and there around 2018 and up. It was my nest egg. Now when I go to work, I drink water and eat any scraps I can find for lunch. Everyday I am still paying for the bitcoin I do not have, with interest. I am in deep depression and do not know if I can pull myself out of this.
Doc 403, filed August 9, 2022:
Both my wife and I are depositors in Celsius and have three young boys ages 11, 17, and 20. We are unaccredited USA investors that were lured into Celsius based on promises, directly from the CEO, that our deposits are safe and can be withdrawn at any time. The CEO of Celsius stated several times that Celsius is better and safer than a bank, and those sentiments are reflected in their advertising.
Doc 397, filed August 8, 2022:
During my life, I have escaped domestic abuses perpetrated within a 28 year marriage; Raised an orphan as an older adult without any support. I have survived a brain tumor, while coping with polycystic kidney disease, debilitating arthritis, and extreme fibromyalgia.
During the years of raising my son a a single mother, I scrimped and saved for a meager retirement. Regretfully I placed 70% of my funds in the “Earn Account” in Celsius Network. …
Now, as a single senior citizen I face kidney dialysis. Additionally, I will be forced to sell my home, return to work and possibly rely on government relief to make up for this deception.
Doc 388, filed August 6, 2022:
About a year ago, I transferred around $30,000USD (most of my savings)…
In 2021, I paid taxes on all my 1046 $USD earnings in the form of 1099-MISC. Not only am I not able to access any of these investments I once considered safe, but I was taxed on earnings that I may never see, in addition to potentially never seeing my savings again.
Doc 387, filed August 6, 2022:
I am one of the depositors in Celsius I have my life-saving funds currently locked in the platform. I am still feeling confused, having mental trauma and the current Celsius debacle has gotten myself into a financial constraint that somewhat changed and restricted my usual day to day life. With that, I am seeking help urgently from you, as I am feeling helpless at the moment.
Doc 386, filed August 7, 2022:
As I sit here behind my computer, I am almost at a loss for words due to the gross misrepresentation by Celsius Network LLC. In the past 6 weeks, the unexpected freeze of my accounts and subsequent filing of bankruptcy has disrupted both my and my family’s life. The stress of this event on both myself, and my family is beyond words. I don’t know how to express the guilt, the frustration, the shame, the self-doubt, and absolute anger that I am feeling regarding the burden I have caused and placed on my family
This is the 1st day in a week that I’ve been able to be in my home and sit in front of my computer to type out this letter. Because of the anxiety I am feeling over this event, I have become depressed, moody and have even been drinking in an attempt to decrease my stress. Last week my wife of 17 years asked me to leave our home due to my emotional turmoil and unpredictability. I have missed work this past week as I have sought out help for behavioral counseling and marital counseling as my wife essentially left me last week over a depressive episode due to this. How do I explain to my daughters that the financial nest egg that would have been their start to a better future is now “frozen”, and we may never see those assets again. How do I possibly rebuild that nest egg now? Most importantly, how do I begin the healing process with my wife and my daughters over this?
Doc 383, filed August 6, 2022:
I made the decision to move my entire cryptocurrency portfolio, which at the time of writing this is over 80% of my life savings, to the Celsius platform on June 11th - just 24 hours before it was revealed that withdrawals were paused and all accounts were frozen. The total monetary investment is in excess of $80,000. It is mostly invested in Bitcoin, some Ethereum and over $6000 in USDC stablecoin.
My funds are in a “custody account”, which from what I understand should remain in my control, but unfortunately this is not the case. I never earned a single cent from Celsius, never used their earn program and it’s a bitter pill to swallow that the freeze was announced as soon as I trustfully moved my assets there.
Over the 10 years I have lived in the United States, I have worked very hard for my money at the United States Postal Service as a mail carrier. I have saved my money diligently with the hope of one day buying a house, and my recent investments were part of a plan to help achieve that. I don’t wish to be rich, just to build a comfortable future for my loved ones and I.
Doc 366, filed August 4, 2022:
I deposited money on the Celsius platform as a retail investor who sought an opportunity for a safe, conservative investment. I am an “average Joe” of average means, I work full time as a registered nurse and I am raising a newborn daughter. I am not a rich man, I work hard, I serve my community and I abide by the law.
Over the course of about one year, I purchased about $10,0000 worth of bitcoin and deposited it into Celsius for long term storage as these funds are dedicated to a down payment for a house and meeting the needs of my daughter.
Doc 356, filed August 4, 2022:
As a Celsius account holder with an initial principal balance of approximately $125,000 (of which I have withdrawn/transferred out $0 since my initial transfer into Celsius), a substantial portion of my life’s savings… It had taken me many years to be convinced enough to move a sizeable portion of my family’s savings from mutual funds into crypto. I purchased cryptocurrencies because I was made aware of Celsius Network, where I would have the opportunity to bank my cryptocurrencies somewhere that I could earn weekly interest, credited to my account in-kind, while holding for the long term… It was November 29, 2021 when I first started buying BTC, ETH, LINK, MATIC, and SNX and transferring it all into my Celsius account. I quickly got to a point where my family and I were satisfied by the amount of money we had parked in Celsius, and our plan was to let it ride for the next 5-10 years. We thought our investment was protected, but little did we know this was a Ponzi scheme all along – an investment fraud that pays new investors with funds collected from new investors. I believe Celsius qualifies, because as the markets crashed and people stopped putting money in, and rather started to panic and take their money out, the company went defunct. However, this still baffles me, because my ~$125,000 of investment that I thought Celsius was a safe haven for, became locked out. One would think if a BTC was worth 50K, and it went to 25K, you could technically access your BTC at the 25K if you needed to. This is not the case, and is heart breaking.
Doc 353, filed August 1, 2022:
Today, August 1, I have no access to my Crypto funds (20.156131 ETH [~$34,000 on date of filing], that were worth 71.888,66 USD at the time I deposited them on October 7, 2021). This situation seems unfair to me, because that is my money, my life savings. I trusted them. I´m from Argentina, a third world country where the US Dollar worth a lot of money to us (a Dollar is worth almost 300 Pesos). I decided to protect myself from the inflation of my country by having my savings in crypto and I trusted Celsius by depositing my money with them to obtain a small profit that would allow me to live at the exchange rate of the US dollar. Now I have nothing. I quit my job, to live off the rewards from Celsius, just like Alex Mashinsky encouraged us to do at the AMA’s on YouTube… Now, I can’t access my money due to this mishandling by Celsius, I am full of debts and can’t pay my rent. I’m desperate and I feel like I’m living a nightmare. I really hope all this ends soon and be able to have access to my money to continue living.
Doc 347, filed August 4, 2022:
I do have to admit, the higher-than-normal interest payout for stablecoins is what attracted me to Celsius. Currently, I have deposited $19,596.14 USDC statblecoins, over the past 12 months. This money (USDC) was to be withdrawn yearly to pay my house property taxes, house insurance, and family living expenses. My point is, I did not invest in something risky, since I knew I needed this money monthly/yearly.
Doc 345, filed August 3, 2022:
I started working on my first job with my father when I was 14 years old, and I have not stopped working ever since. I am also used to keeping money in my monthly savings account. When I was a teenager, I learnt more about investments and got into the investing world. I became an investor in the stock market and I multiplied my assets in a conscious and planned way. In 2020, I decided to start researching the cryptocurrency market, and I have embarked on this journey since then.
I invested all my capital accumulated in these years due to honest work as a simple salesman with an income of roughly $234.30/month. I converted all my assets into cryptocurrencies (stocks, my apartment and a car). Therefore, I decided, in 2021, after searching about Celsius, to use half of it to apply for the loan program and the other half to keep aside to pay off the loans at some point in the future, always acting in good faith when in business with an entity or a person. I have always paid off my debts.
Today, I come to Your Excellency asking you to consider my situation. I know the amount in my account may not seem like much to many in the US, but it means a lot to people from developing countries, like me, and losing that amount would have an immeasurable impact on my current life and my future. Seeing the money I saved as a 14-year-old boy lost like this out of the blue is heartbreaking.
Doc 341, filed August 3, 2022:
I have been trying my best to write to you for the past two weeks, but I am just so depressed that it has been a real chore. The fact that past 11 years of saving my money, then rolling it into Bitcoin 2020 that was stored in what I thought was a relatively ‘safe’ bet has now been greatly compromised. I have sweated, bled, cried, and worked 50+ hours weeks for 10 + years, not to mention out of those 7 and half years I went to school full time and worked full time and was going to use this as my nest egg to pay my student loans which payment begins assuming in January 2023. To be here now only feels that I have been deceived, taken advantage of, and held hostage for what I thought this entire time was MINE. … This is supposed to be some of the happiest moments of my life where I just graduated college with an awesome engineering degree, moved to a new exotic big city, earned a dream career in a top fortune 100 company and someone is just trying to walk away legally with my assets that I worked so hard and their defense is its in the terms of agreement and its social medias fault?????? NO! I don’t walk 40%, 50%, 60%, 70%, 80%, 90%, 95%, I want all Back because it is MINE!!!! If anything, I should be suing for emotional damages!! I won’t and don’t believe in that sort of thing though. I just want what is MINE! I can wait because I never planned on selling it. It is intended for generations of [writer’s surname]’s down the line, and this is not just money. Its Bitcoin!!! Anyways I digress other people have been doing a great job of expressing of how I am feeling because the shame, the anger, deep sadness, the humiliation, irresponsibility (I convinced a friend to put roughly a 3rd of a bitcoin in to Celsius too) anxiety I feel is immense, and while I am managing my mental health with resources from my new job, it is still extreme distracting, and I know the courts will determine what is just and what isn’t.
Doc 333, filed July 28, 2022:
I’m a Celsius depositor at risk of losing much of my life savings that is locked on Celsius. I’m a 72-year-old woman who supports myself with parttime work and social security. It took me four years of buying BTC and ETH in small increments to accrue the 1 Bitcoin [~$23,000 on date of filing], 7 ETH [~$11,500 on date of filing] that are now locked in Celsius. I planned to hold these assets in a safe crypto ‘bank’ and wait for them to increase in value so I could pay off my mortgage. Only without a mortgage payment will I be able to exist on just social security. I’m now facing the loss of my savings and a future of mortgage payments I can’t pay due to Celsius’ fraud against depositors.
Doc 329, filed July 29, 2022:
I have been retired for over a decade and my wife and I have invested approximately one half of our life savings in the Celsius Network Rewards Account. Upon learning of the Creditors Committee, I considered applying but learned that this committee would be most likely made up of creditors with significant assets invested. While this looks to be the case, I wish to point out that on a percentage of total wealth basis few would exceed our loss.
Doc 321, filed July 26, 2022:
I also share a similar story to many other depositors who have modest amounts of their net worth locked in Celsius. I am just a little retired old lady living on a fixed income with some investments but am no way rich or even well-off. I also know that many people are speculators, not someone like myself who is searching for ways to supplement Social Security income, especially during a high inflationary environment.
I purchased my small amount of crypto hoping just to earn enough to help me weather a few years, kind of a safety net. It’s not a lot of money and I never expected it to be, but I didn’t think it would disappear, especially with a company that was touted as “safe.”
Doc 318, filed July 28, 2022:
I’m reaching out to you as a Secured Creditor in Celsius who has been a VIP client of Celsius since September 2021.
Before joining Celsius, I did tremendous research and talked with Celsius customer service, who promised me that my funds were safe because I controlled the keys to my wallet. I trusted the company and I decided to pour all of my life savings with the company, lending them $632,329.03. …
I must also say that the whole time I was a customer, I was solicited by Taylor Hendrickson, Celsius Corporate & VIP Account Manager, who begged me to become an accredited investor, since I owned significant amounts of bitcoins and other assets. He warned me saying that if I do not become an accredited investor, I would not be able to collect any more interest because New Jersey gave Celsius a cease & desist order to stop them from fraudulently enticing more customers with the promise of high interest bearing account, which Mashinsky claimed was safer than a bank. …
I have absolutely no money left in my bank account now, and if I do not get my money back, I will be out in the streets with nothing to show for it. I plead with you, please help the individual clients of Celsius first, ahead of corporate clients. We will lose the roof over our head if we do not get our money back.
Doc 317, filed July 25, 2022:
Judge Glenn, I have sadly read letter after letter from disappointed to desperate account holders whose money has been frozen at best, and lost at worst by Celsius management. It breaks my heart to read these letters pleading for some kind of justice for the “little people”. I consider myself one of these little people, not special or connected. I’m 71 years old, retired, and have money in the low six figures tied up in Celsius. Since I’m retired, I’ll never have an opportunity to replace those funds. I don’t know if I’ll ever get any of my deposits back, but I am lucky in that regard. I won’t starve and will still have a place to live. The money, foolishly, was for my heirs. I can’t bring myself to let them know that I have lost their money, eventhough they didn’t know it was housed in Celsius. In the end, I can only blame myself.
Doc 314, filed August 1, 2022:
It is really hard to write this letter as I lost my life savings that I’ve worked for more than 20 years. I am one of the people who actually did research and spend a lot of hours learning about Celcius before putting life savings there. I actively follow their reports, in fact, a few days before they paused the funds, they (Alex Mashinsky) still gave us assurance that our funds were totally safe.
Doc 312, filed August 1, 2022:
As background, I am a medical professional working to support Oncology research, so I am not an expert on cryptocurrency or bankruptcy legal expert. I am one of the creditors with well over six figures of my savings invested on this platform. I’ve been oscillating between angry and depressed with this experience over the last two months with no access to my assets. I will not rest until depositors are made whole without a so called “haircut” on our funds deposited. Just like most people during this financial crisis created primarily by our government and financial governing bodies, I was trying to gain a little income to offset inflation caused by the Federal Reserve pushing rates to zero, buying up of all U.S debt/bonds, and the government flooding the market with a ridiculous excess of money supply and liquidity. Holding USD or cash in traditional banks with zero percent interest meant you were making no interest and losing significant buying power relative to the parabolic, historic inflation rate. Aside from the stable coin USDC, I only invested in the largest and safest crypto investments while primarily earning a modest rate of return with Celsius right now of 2.5% BTC and 4% ETH. Celsius and Alex Mashinsky fraudulently mislead depositors on their risk model or I would have never invested on this platform.
Doc 311, filed July 29, 2022:
I have a significant amount of digital assets in the borrow/loans part of Celsius network that has been frozen over the past month. In total I have 7 loans adding up to almost 50 bitcoin [~$1.18 million on date of filing] and 160 eth [~$252,000 on date of filing].
Doc 310, filed August 1, 2022:
My sister… introduced me to deposit my coins in Cesius. She is very cautious for what she is doing all the time but I can’t believe this issue for her and myself even for my mother…
Doc 309, filed July 29, 2022:
Sadly my mother passed away recently and on 8 March 2022, with my father having passed away in 2018, I deposited $143,200 of inheritance in Bitcoin with Celsius. This represented the majority of my parents’ lives of hard work. With these funds I obtained a loan with Celsius, receiving $35,767 USD for the above collateral.
Doc 307, filed July 29, 2022:
Your honor this case has impacted the lives of potentially tens of thousands around the world, including my life savings as a retired school teacher… I too feel misled and have suffered significant financial harm that will impair the way I live for the rest of my living years.
Doc 306, filed July 29, 2022:
I am a 22 years old psychology student from Romania, Europe who worked hard to save some money - with the idea: save now, so you will not have to work for the rest of your life. I studied, I worked 2 jobs and I managed to save 0.036285 BTC (822$ on date of filing). I took no loans and I planned to withdraw my money after 5 years, to buy a house. I feel betrayed, lied & scammed by Alex Mashinsky and the company. They assured us every week that everything is fine & they showed us false data.
Doc 290, filed July 27, 2022:
I consider myself a fiscal conservative investor and would not risk and avoid speculation. Since the 2008 financial crisis, I had become cautious of the financial markets and that led me to exploring alternatives. This is when I came across Bitcoin and started to research.
Gradually, after becoming a trusted follower of Mr. Mashinsky and Celsius Network, I decided to move a substantial part of my investment/retirement into Celsius.
Doc 283, filed July 27, 2022:
Having lost money in Terra Luna collapse earlier and looking at my crypto holdings decreasing in value because of the bear market, I was convinced by Alex Mashinsky that depositing my remaining crypto to Celsius makes sense as this way they can generate interests and hopefully offset some of my losses. When I deposited my remaining crypto to Celsius, 2 days later, Alex Mashinsky paused all withdrawals.
The funds I deposited to Celsius are hard earned money. I worked long hours for those money and saved for many years. They represent my life’s savings and part of my retirement plan.
Doc 279, filed July 28, 2022:
I am a retired Dutch citizen.
Like many others i never thought of transferring all my pension savings as an investment (as Celsius seems to be calling it suddenly after filing for Chapter 11) but from one savings account to another… Also most of us — elderly; risk avoiding depositers — deposited in stable coins because at our age, one can’t speculate on highly volatile assets such as crypto currencies. Many of us — as we are not able to access our savings — can’t now pay for medium or bigger ‘calamities’ in our households, unless that is why we did set aside our savings for.
Doc 278, filed July 28, 2022:
I am a Celsius customer with around $30, 000 USD of deposits locked up in the platform.
I have a large chunk of my retirement funds in this organization and will be severely affected by any loss.
Doc 273, filed July 27, 2022:
I personally know dozens of individuals who have been tremendously affected by what has unfolded at Celsius over the last 6 weeks, including my entire immediate family.
Once I transferred my entire portfolio to Celsius (approximately 47 BTC), I began taking 1% interest loans on a portion of my BTC. Within days of being on their platform, my entire account was frozen (over a $1,000,000 in assets). I didn’t even have the opportunity to withdraw the loan I took from Celsius even though I gave them 4x in collateral.
As it stands, I have lost my entire life savings on Celsius and am now in the process of selling my home.
Doc 272, filed July 26, 2022:
At the time of my deposit, it was worth approximately $100,000. Since the freeze of assets, my overall disposition has left me depressed most days. I am in my late 50s and making this money back is difficult at my age.
Doc 271, filed July 26, 2022:
In Celsius, I have not only my hard-earned savings. I have recommended it to other family members and now I am liable to bear the entire loss because I passed on those scammers’ promises.
Doc 267, filed July 27, 2022:
I’m 75 years old, a retired research scientist and have been investing for well over 50 years and investing in cryptocurrencies for over 6 years now.
I did not retire until 69 years old to have a sufficient nest egg for retirement and have invested a good portion of my total assets in cryptos. While I have done well with cryptos until Celsius’ bankruptcy, the loss of cryptos that are stored at Celsius would have a significant impact on my retirement, the proper care for my wife (who is ill and I am her caregiver), as well as my estate.
Doc 266, filed July 25, 2022:
I had been earning and holding this bitcoin for the last 6 years and it was my and my family’s everything all the savings we had for our future, I didn’t sell this bitcoin and took loans against it because I believed Celsius to hold on to them, but then they didn’t give me a possibility to add collateral or pay these loans back to get my collateral back to me, I could’ve sold it at 69k but didn’t and now Celsius just liquidated it illegally by not giving me a way to handle this.
Doc 262, filed July 24, 2022:
I am a 30% Disabled Veteran. I stand to lose about $38,000 worth of Crypto from this case. It is a significant amount of money to me!
I don’t know how much longer I’ll be able to work physically? I have several misalignments in my spine and many pinched nerves. You wouldn’t know it by looking at me and how I work. I generally don’t mention it, but it’s a reality for me. I’m trying to secure the future this company seemed to promise.
Doc 261, filed July 24, 2022:
In total I have deposited $3,000 into Celsius. I know that this may not sound like a large amount especially when hearing about the millions of dollars Celcius would like to continue to pay its employees. Losing this will have irreparable consequences on my well-being and will take me years to recover.
I am in need of withdrawing my funds immediately as I am in dire need of my funds during this time.
Doc 259, filed July 24, 2022:
I am one of the Celsius users that has been affected. Unfortunately I have all of my life savings held on the Celsius platform. My family trusted me to store their Bitcoin on my Celsius account as well. However, we did not expect to be blindsided. This was a lot of money that we were going to use as leverage for a better life - not having to live paycheck to paycheck, not having to worry about rent due, being able to pay off our debt and college tuition. It may not seem like a lot to the majority of people, but two years of our savings and investments have been robbed from us. For a low/middle class family, this whole situation is very daunting and extremely stressful.
Doc 258, filed July 22, 2022:
I am a disabled citizen who is dependent on government assistance. I feel it will help to shed light to the desperation I feel if I give you an idea of the extent of my disability. I broke my neck when I was 21 and this left me a quadriplegic, paralyzed from the neck down, and wheelchair bound. I recently turned 40. Aside from government assistance, I try my hardest to do my part and get work whenever and wherever I can. I am able to achieve this with the aid of my elderly mother who is unable to work herself.
As you can imagine, finances have always been tight so Crypto currency was my one hope of some sense of financial security . Since 2015 I bought what I could with the $8.00 hourly pay I was given as an event staff in hopes that maybe someday I can secure basic necessities for me and my family. I’m no “big fish”. The small fortune that Celcius has taken away from me was my life-savings that I have been building with sweat and sacrifice for 12 years and because of my situation this also includes sacrifices my mother has made. It is indeed small compared to other investors, but it carried with it my big hope for financial security.
I do not seek luxuries, Your Honor. I only wanted to be able to afford basic necessities. Please help me be whole again as this situation Celsius created is wreaking havoc on my mental health. There have been many sleepless nights since Celsius halted withdrawals and this has made me really anxious about my future. I already suffered a tragic loss of my ability to ever walk again and did my best to be strong and fight to start over with my life. This financial blow by Celsius has caused me depressed and unable to work, my confidence is gone. I feel humiliated and defeated.
Doc 250, July 26, 2022:
I am a 40 year old father of 3 from Australia that had his life savings in a Celsius earn account and his entire superannuation stored in a SMSF Celsius account. On 29/03/22 both accounts came to a total of $561,901.79AUD (6.34BTC & 36.78 ETH)
This has had an immense impact on my life and my financial future looks extremely grim.
I feel humiliated, angry, anxious and have had many sleepless nights coming to the realisation the all my funds I have been saving for my childrens future for the past 20+ years has been gambled away by a liar and a fraud.
I would also like to add my father’s situation into this letter, he is a 65 year old retired man … who I convinced to invest his stake in Crypto currency into Celsius as a “safe haven”. Given my comfort level with Celsius, thanks to all the lies I was fed by Alex and the team listed above, he followed my advice and his crypto stake money was invested into Celsius. His current holdings are 14.926298 Ethereum, 1.032703 BTC, 6890.110949 USD and 54.959432 PolkaDot, which was worth on 29/03/22 $154,256.70AUD.
Doc 247, filed July 24, 2022:
I am a small investor from Spain, that put all his savings into crypto on Celsius, hoping they would grow slowly over the years and be safe. These savings were intended to help leverage the effort of sending three children to university and, if possible, our retirement. Now all these hopes and dreams are in danger.
Doc 243, filed July 22, 2022:
We are a common family trying to generate some extra income by taking risk as banks do not ay any interest, We deposited several Crypto currencies into Celcius Networj because they were advertising healvily and saying they are different. THey care for the small investors. They took our cyrpto coins and currencies and loaned out to people without proper collatrals against it.
Now we lost everything, we needed to pay our daughters studen loan, parents medical bills with the earnings from crypto but all is locked up in Celcius.
Doc 242, filed July 22, 2022:
The fact that Celsius is regulated by the state of New York and SEC compliant was a significant reason I decided to trust Alex and move my money on to this platform. I must ask what is the point of regulations if these regulations at the end of the day don’t hold any water? Regulations are supposed to provide security. Hasn’t anything been learned since the 2008 financial crisis? SEC compliant is this not the case and loans can be made without collateral? Should we trust anything with these claims?
My deposits into Celsius are one crypto currency and the other is a stable coin. I trusted that my money was safe on Celsius because of the fact that Celsius is regulated in the United States, so it must be safe, since they would never be able to make uncollateralized loans using my USDC coins as collateral, the regulatory body would never allow such a thing, especially after the 2008 financial crisis. This was my thought process, so it would have been better if they were not regulated in New York, because then I would have assumed that my money is not safe.
Doc 240, filed July 22, 2022:
[I] have been a Celsius user since 2021 and have a good amount of our family savings with them that we cannot access since June 12. I was using Celsius to generate yield and even gave up some collateral to take loans out to generate more yield.
Life throws people enough curveballs as it is and I feel this was a 100 mph fastball straight to the face.
Doc 230, filed July 23, 2022:
I deposited money on the Celsius platform as a retail investor who wanted a chance to actually make the gains that the ultra wealthy and rich have done for years. But it turns out it was too good to be true. In total I have about 60% of my partner and my savings on their Earn platform between several cryptocurrencies currently as of this writing totaling $10,649.91.
Doc 229, filed July 23, 2022:
Thank you for hearing the voices of our community. My crypto holdings in Celsius were most of my life savings. The loss of these funds puts my family into the worst financial situation before the possible recession starts. I’m a young professional who has also taken care of my parents and am now more than ever frightened to lose my job.
Doc 228, filed July 23, 2022:
I do have my hard working money for the past three years deposited in Celsius and I just find out I can’t withdraw, I’m a 56 old man with out job due to the low jobs in construction and hard to find something else special at my age and I’m asking please for help to get my money out from Celsius .
Doc 227, filed July 23, 2022:
My wife and I are teachers. The little that we have saved we had invested in Celsius.
Please do not liquidate our crypto and converting it to US dollars. 18k may not seem like a lot, but it is a lifetime of saving for us. This will inevitably greatly affect our future and the future of our children.
Doc 225, filed July 23, 2022:
I am the eldest son from the Philippines, who deposited my cryptocurrency to the company Celsius Network. My account balance is in the low five figure range when denominated in US Dollars. Me and my family are severely impacted financially due to bankruptcy, caused by the CEO Alex Mashinky and his colleagues at Celsius Network.
Both my parents are senior citizens, whom I care for and my assets currently held in Celsius were intended to support them in their last years in comfort. I pray I will soon see most of my funds returned soon.
Doc 222, filed July 26, 2022:
First of all, I am well aware of the accountability resting upon me for where I invest my money and will own what is mine. Looking back, obviously I should have done a greater due diligence before entrusting Celsius with my hard earned dollars, which sadly is all in their Earn account. This is one of the most devastating experiences of my life but even more painful, is that I advised my three sons to invest with Celsius and now they also are facing tremendous losses as well.
Doc 221, filed July 22, 2022:
I am a Celsius customer, currently with about $16,933.65 (as of July 20, 2022) worth of deposits that are locked up in Celsius earned account. … $16,933.65 may not mean a lot of what was $36k - now down since crypto market is down, but it is 70% of my life savings. … Losing all my savings will have irreparable consequences on the well-being of myself and my family. I am the bread winner of the family and thought I was doing the right and safe thing by putting my cryptos in Celsius because they claimed to be most safe and are for the little people. I am ashamed, humiliated, and disgusted that I put all my trust into a company that has now been revealed as clearly participated in a near fraudulent activity. I will be spending years trying to make back the money I lost.
Doc 218, filed July 25, 2022:
I currently have 1 Bitcoin [~$22,600 on date of filing] and 15 Etherium [~$24,000 on date of filing] stuck in the Celcius network. I have been investing in Crypto since 2017 and I ended up stumbling on Celcius’ network back on April 13th. I am currently not an accredited investor. Everything was fine of course until my life was turned upside down when Celsius announced on June 13th they were freezing our accounts. Since then I haven’t slept much, knowing that five years of hard work are now down the drain. The most infuriating part is that their employees continue to be paid, and for what, I have no idea. As customers we cannot do anything with our Crypto other than log onto the app and watch our money in purgatory. Only my wife and a close friend know, I’m too ashamed to let anyone else know.
Doc 217, filed July 22, 2022:
I personally have about over a million dollars in BTC and Ethereum, in todays prices, that I can’t withdraw from Celsius, not including the 500,000 CEL token that I haven’t counted. Most of us are feeling very stupid and ashamed. We have been conned by the ultimate con artist. This company has ruined peoples lives.
Doc 214, filed July 22, 2022:
Clearly Celsius made many missteps and I too feel misled and have suffered enough financial harm that it will impair the way I live for the rest of my life.
Doc 213, filed July 23, 2022:
I am a crypto investor in Celsius Platform, resident and citizen of India. Ever since Celsius has blocked the withdrawals and transfers of currency, I lost the access to my 3.15 Bitcoin [~$71,500 on date of filing] which were invested on this platform across 2 accounts. This money is my lifetime saving and my families and my future were depending on it. I chose Celsius as they often claimed to be very secure and an alternative to a bank, but I was wrong. There may be investors who lost much more than me, but for me these 3.15 Bitcoin mean half of a lifetime, something I could never afford or imagine to lose.
Doc 212, filed July 22, 2022:
My mother died from Multiple Myeloma (blood cancer) in 2018 and I was a beneficiary of her Trust. I used most of that inherited money to buy bitcoin and a few altcoins in 2019. After seeing Celsius advertised on Youtube channels and after reading about Mashinsky, I decided to move my crypto into a Celsius Earn account so I could earn interest on my crypto. It was a modest amount of interest. About $25 per week in interest payments but I trusted this was the right move. I’m 56 years old. Alex Mashinsky has bankrupted my retirement.
I could go on for several more pages about how we investors were lied to, misled, tricked and defrauded, and how Mashinsky and his friends looted the investor’s crypto, took insanely risky bets with our crypto, and tried to launder money through an Israeli crime ring but I have exhausted my desire to live. My passing is 100% the fault of Alex Mashinsky. Mashinsky and his crime ring have stolen over $60,000 from me.
Doc 206, filed July 23, 2022:
I am a retail investor with asset valuing approximately $32,200 on the Celsius platform. This sum might not mean much to some people, but it constitutes about half my life savings and has dire implications for myself and my family.
Doc 205, filed July 25, 2022:
The deposit amount consists of savings of both my parents and my savings from a combined working history of over 65 years. The emotional and mental stress that I have suffered from having my deposits frozen is considerable and I am trying to keep myself from falling into a deeper mental and emotional hole. Suffering from chronic back pain since eighteen years old-over 35 years and no longer having access to my deposits, I have applied for welfare to make ends meet in the future since employment prospects are minimal with my condition and age.
Doc 204, filed July 22, 2022:
I am a retired senior citizen of the USA. I saw no opportunity to earn interest on my life savings in a traditional bank and inflation is at record highs. I trusted Celsius to give me a reasonable rate of return on my life’s savings of about 5%, which I hold in stable coin, BTC and ETH. I own no CEL. I was mislead by Mr. M, who said that Celsius loans were over collateralized and that my money was safe. Now, I am facing financial ruin. Please do whatever is possible to save depositors’ money and please allow us to benefit from increases in crypto prices that will surely come at some point in the future. In the meantime, I pray for all of us who are suffering financially and emotionally because of Mr. M. The mental pressure is almost unbearable. The actions of Mr. M. have created unspeakable misery for many people and I am sure will result in suicides. I’m crying as I write this and feel sorry for us all. I would appreciate anything you can do to help make us whole.
Doc 198, filed July 25, 2022:
I write to you to let you know the devastating impact that Celsius is having on my life. My husband and I put in a combined amount of $138,000 USD into Celsius trusting their intent and care for customers. The thought of losing that amount of money is horrifying. That was our life savings. It was our chance of having a baby, and funding medical expenses. It was our chance of taking care of our parents as they age. Since the halt of withdrawals, I have not been able to sleep or eat properly. I have been emotionally distressed which is impacting my marriage and my life. I feel like I just cannot get up each day and keep going. My mother, who passed away of cancer when I was 19, left me with some money that I put into Celsius. If I do not get that back, I will end my life as the loss will impact my family and I significantly.
Doc 197, filed July 23, 2022:
My aunt is a 72 year old domestic helper. She’s been working all her life to support her family while taking care of mine. Specifically, she’s been working with my family for the last 33 years. Needless to say a domestic helper’s salary barely covers living expenses for her family, yet alone savings. As a sign of gratitude, I created a Celsius account for her as a way to build and grow her retirement fund so she can go back to her home country and live her remaining year in relative comfort, as she deserves.
From small monthly deposits, and a few lucky decisions later, he account grew to USD40k in slightly under 2 years. This made her a millionaire back home which allows her to live a decade (based on life expectancy) in great comfort, the ideal retirement. She was due to retire in August 2022 and I was only planning to pull assets out of her account in mid August.
Needless to say, I now can’t withdraw assets from Celsius and she no longer has a comfortable retirement to look forward to. She continues to be employed by my family which we are more than happy to have her. But at 72, and weeks from retirement, I cannot begin to imagine how debilitatingly disappointed she must feel.
Doc 196, filed July 22, 2022:
I have most of my long term savings, including a downpayment for a house in California, which is a significant amount tied up in Celsius, because since day 1 I believed that everything is all backed up, deposits are safe, there is enough collateral and so on. How can you face your spouse and tell her that all the savings and the downpayment for the house are gone?
I live in United States of America, one of the greatest nations in this world, we are not in some 3rd world country swamped with corruption on all levels, and people robbing people on the streets as a profession. Why wasn’t Celsius overseen by the necessary institutions, I’m sure to get a licenses to operate the way Celsius has, there are government institutions that must oversee those balance sheets, the loans, the money, the lending. How is it even possible that a company gambles away billions of dollars, because it’s growing too fast and betting on a future where crypto currency value only grows in the short and long term, now this is extremely risky. Where was the oversight?
Doc 195, filed July 23, 2022:
I had 95% of my life savings in Celsius as I was made to believe that it was a safe and secure account where I could earn 1% interest on my bitcoin. I had 21.7 of them [~AU$705,000, ~US$493,000 on date of filing] in their across 3 accounts. I deposit 13.2 bitcoins [~AU$429,000, ~US$300,000]36 minutes before I receieved the email saying no more withdrawals and it has come to my attention that withdrawals had been halted long before the email was sent out and so it was misleading of celsius to continue accepting deposits knowing full well they were insolvent and my money was about to disappear.
I have less than $30k now in my bank account, I have more than $330k AUD owning to the Australian Tax Office, and I have a $1.19m mortgage that is about to explode to a 16% interest rate because I will very soon be defaulting on my payment.
I have suicidal thoughts and the only reason I hadn’t already taken my life was the burden that would leave my family, and I have lost 15% of my body weight in 6 weeks from the stress of suddenly losing everything that i’ve spent my entire life building. Worst of all, my mother split my home with me so if I default on the home she’ll be homeless at 60 years of age with no other savings and her rock bottom to a place with no out will be on my hands and I just don’t see a way where I can recover.
Doc 184, filed July 22, 2022:
I personally have around 10/15 thousand US dollars worth of assets sitting on Celsius at the moment, which I have been blocked from withdrawing. This is a reasonable amount of money for me and I’ve lost most of, if not all my crypto and savings.
Alex Mashinsky scammed me out of almost 0.4 BTC, along with some other coins too. I have lost the money i was saving towards a deposit on my own house. Alex has cost me a fortune while he enjoyed my funds to live the life of Larry, spouting lies and complete mistruths to obtain more money from investors to take outrageous risks with our money.
Doc 183, filed July 22, 2022:
At this moment, as I am writing this letter, and the current market conditions I have $23,653.98, which $13,024.05 is held in USDC stable coin. All my coins are held in the “Earn Account” b/c I was supposedly “Grandfathered In”, since I live in the United States and I’m not an Accredited Investor. I am a Single Father, Full-Time Dad, no breaks, and this is my life savings. I know it’s not much, but I was trying. With All money cryptocurrency locked up in Celsius this is taking a toll on my health, family, mentality, sleep, and any other emotion you could imagine.
Doc 180, filed July 23, 2022:
I had a plan. I am separating from the United States Military this week. I had saved over $100,000 which I deposited in Celsius Network in 2021, primarily as USDC. That money was set aside to support me through my post-military education. It took me decades of sacrifice to save that money. Like so many other people, the fund lock-up at Celsius has had a downward spiral impact on my life and I have had to borrow money from family just to make ends meet.
Doc 179, filed July 23, 2022:
I am a small depositor – an 84 year old widow on social security. The deposit was my life savings to pay for home care when I’m no longer able to care for myself. I don’t have years to wait for my saving to be returned. I made this decision after I watched the terrible care my husband received in a rehab hospital that also was a nursing home. My time on the platform was just over one month, and I took no loans. My assets were 1.46621 BTC [~$33,300 on date of filing], 7.748 ETH [~$12,400 on date of filing], and 50 LTC [~$2,800 on date of filing]-a tiny amount compared to the vast amounts other may have lost. However, now I have to face the fear of the pandemic mistreatment of the ill elderly in a nursing home.
Doc 178, filed July 22, 2022:
I am an Irish/Australian retail crypto depositor into the earn account. I am 42 years old and have a 4 year old child. For the last 2 years I have been steadily purchasing Bitcoin and Ethereum with a firm belief in the ecosystem and its possibilities. I am a refrigeration mechanic/electrician working in the large commercial industry. My job involves very heavy lifting, working in extreme weather conditions here in the far north Queensland tropics and very long hours given the lack of people in my sector up here. The plan was to work a ridiculous amount of hours and live in a very cheap run down property to maximise savings. The end game was to buy a house for myself and my child. I have no family over here and nobody to fall back on so I had to come up with a plan. I have lost everything. How can I explain this to my son? I feel ashamed at myself.
Doc 177, filed July 22, 2022:
I feel really betrayed from Alex Mashinsky and his company Celsius. He published so many videos in the last two years about how good Celsius is, that all customers are protected because of a high insurance from Celsius. Mr Mashinsky also said that the funds of customers are always accessible. I have over $76000 US Dollar worth of funds on Celsius…
Doc 175, filed July 22, 2022:
I too, was led to believe that Celsius was the “safest, most transparent home for crypto”, and for that reason held almost the entirety of my assets with them - emphasis on past tense.
Now, I am presently in a position whereby I can’t make rent and I am well behind with my tax savings as I had entrusted them to look after my funds. I am in major need of money and feeling somewhat helpless, especially as a small holder; powerless.
I was a keen purchaser of and believer in Luna Classic – for a decentralised future - before its collapse and for the seasons stated above, also kept 100% of my Luna (equating to 85% of my cryptocurrency wealth) with Celsius. Following the de-pegging of UST and the collapse of Luna I was desperate and resentful, as well as having the overwhelming feeling of stupidity on my own part.
However, all was not lost as I still had money – worth roughly $1300 today – on Celsius, which may be pennies to some but would drag me from the hole I find myself in. I am particularly interested in my 770 MATIC [~$700 on date of filing], which again wouldn’t be worth writing about for most, but to me represents a chance at a better future for myself and a chance to eventually begin to average into that asset once more with the hope of being in a better financial situation in years to come.
As things stand, I have roughly 100 Euro in my bank account with a personal loan of 130 to repay monthly, and no means to even make the rest up. As mentioned before with my tax savings, I am in the first year of self-employment so things are very, very hard anyway. The jump, believe it or not, was due to the fact that I had managed to accumulate almost $15000 with Luna and therefore had a ‘safety blanket’ to see me through the opening stages of my new adventure, yet here I am.
Doc 173, filed July 22, 2022:
I have been a Celsius Network customer since 3 rd March 2022. My husband and I each have a Celsius account, and I also have an account for my self managed super fund. In total we deposited circa $240,000 AUD of crypto assets to the Celsius Network, which is a significant portion of our life’s savings and retirement fund.
I have a history of mental health issues (anxiety, stress, depression) and this event has caused me significant distress. Losing this amount of our savings will have irreparable consequences for our family. I feel betrayed, misled, lied to. I am ashamed that I was deceived by Alex Mashinsky and Celsius Network.
Doc 172, filed July 22, 2022:
I am 65 years old and have put all of my life savings into Celsius. Not all funds initially, but over time as I grew more confident of Celsius. This confidence grew through listening to the CEO, Alex Mashinski every week on the AMAs where he would explain what Celsius was doing and how safe it was compared to the traditional banks.
Doc 171, filed July 21, 2022:
I am a 40 year old husband and father of two boys and was confident enough in Alex to put the a significant portion of my life savings into the platform to help secure the well-being of myself and my family. I understood the risk of digital assets but was fine taking that on as these assets were intended for long-term use. However, with regard to any risk I was taking in terms of Celsius as a platform, I was blatantly, purposefully, and shamelessly misled by the lies of Alex and those around him. … What has happened to my funds has caused incredible grief and pain to myself and my family, the amount of which cannot possibly be expressed in writing.
Doc 170, filed July 21, 2022:
I am 59 and I put close to $300,000 into Celsius (nearly my life savings), most of which was in USDC. At the time I believed that since USDC was a stable coin backed by actual dollars, my money was safe.
I feel deceived by Alex Mashinsky who on weekly AMAs repeatedly declared that our funds were safe and would be protected by Celsius. I accept responsibility for not reading the Terms and Conditions more carefully, but I could not believe that what Alex was saying on a constant basis would be so clearly contradicted by the Terms and Conditions. Alex repeatedly sold and presented Celsius as a low risk savings account.
Doc 169, filed July 21, 2022:
I started giving possession of my Crypto to Celsius to gain the yields from staking in Dec 2021. I did some research and amongst many positive reviews one of the attractive reasons was Alex Mashinsky’s AMA’s statements saying;
- Unlike banks that do that and keep all the profit to themselves, in the Crypto world we give most of the profits or most of the yield back to the community”
- If something bad happened with Celsius deployment, will Celsius stand behind it? Yep! That’s where companies are tested”
From this my trust to give possession of my crypto to Celsius to gain yield started.
- Dec 2021, Jan 2022 transferred $30,000 USD of ETH to get a $200 promotion reward.
- March 2022 transferred more than $120,000 USD of BTC from my Australia crypto exchange,
- May 2022 $3,500 USD AVAX.
- A loan for $12,500 USD locking up $50,000 in collateral BTC
- The loan bought a miner and the BTC mining rewards deposited straight to Celsius.
It’s one thing to think to put crypto into an enterprise that is managing transparently and successfully and another that is lying and continuing to make dishonest claims, so I continued to put more in.
Doc 168, filed July 21, 2022
I am writing you on behalf of my husband and I, who are a both concerned customers of Celsius and deeply troubled by the uncertainty of our assets within Celsius. We are conservative investors and were made to believe Celsius was a low-risk yield opportunity.
We currently have about $44,000 of equivalent funds in Celsius and the loss of our savings would have a devastating impact on our financial lives, set us back many years and be difficult to recover from.
Doc 165, filed July 21, 2022:
I am a “small fish” when compared to others, but I have invested over $50,000 dollars into Celsius and I fear that I will never get it back. I am embarrassed and ashamed of myself to have been taken in by Celsius and the claims they made. Mr. Mashinsky openly stated over and over in AMA’s and interviews, that Celsius was a “safe alternative” to the traditional banking system….. What a lie and I fell for it….
Doc 163, filed July 21, 2022:
I have recently retired after serving 34 years in the Fire Service, I retired out after having a heart attack. If my body did not give up I would still be on the floor serving my community. But that’s not how it worked. Once I retired I realized that whatever savings (457) I had, I had better treat with the utmost caution. After looking at our financial landscape, particularly over the last few years and watching how our government chose to handle it, my Econ 101 kicked in and I realized we (collective we) we’re heading down the inflation road and a crash similar to 2008. In 2008 I lost over 40% of my 457, and at this stage in my life I couldn’t endure that financial hit again. So after some research and having a very tech savvy son, I became interested in crypto currency, more specifically “Block-chain” technology. … Initially I placed my 150 Etherium crypto [~$229,000 on date of filing] and 47,000 Cardano (ADA) [~$23,000 on date of filing] into “Block-Fi” and held my crypto for 1 year with no issues, then I received advertisement for Celsius. … I moved all my Crypto holdings to Celsius based completely off of the overwhelming positive feedback. And, now I find all that information I had gathered was curated B.S.
Doc 161, filed July 21, 2022:
These are a big chunk of my life savings and it is heartbreaking to just see these coins I have slowly acquired be stolen from me.
The BTC and ETH are my main holdings and were my long term life savings focused investments, since I have full confidence in these coins for many years to come. I never expected that they could just be taken from me at will by Celsius.
Doc 160, filed July 22, 2022:
I put all my personal savings that were sitting in a bank account for various needs. Including purchasing a car in the very near future, maintaining my home, vacation savings, and extra funds for unexpected events.
Well I had an unexpected event. Carpet in my house got ruined. The carpet was growing mold and making myself and family sick. So we had to replace it before we ended up in the hospital from constantly breathing in mold. I had to sell some of my retirement investments in order to pay for the carpet. Had I had the savings that I transferred to Celsius, I would not have had to dip into my retirement funds.
I also had a long weekend vacation planned. I was going to use my savings to pay for it. Again I had to sell retirement investments to pay for the vacation.
I also sold $50,000 from my retirement investments and put them into Celsius. It took me years and years to save that money. Not sure if Ill ever get that back.
At the time of this letter I have over $99,000 with Celsius. $50,000 being from retirement and $49,000 being my personal savings.
Doc 159, filed July 21, 2022:
I have approx. 7,000 worth of assets stuck on Celsius. To some that may not be much. To others like myself, it is a huge part of my investment. You may be thinking that I deserve this and I’ve should have gotten out before Celsius paused withdrawals. Maybe so. But I hope there is a part of you that sees many people losing out on their investments/life savings. It’s a real shame that this happened to people who like myself are just trying to improve their quality of life by increasing their net worth.
Doc 158, filed July 21, 2022:
I’m from Brazil and I have 0.1 BTC [~$2,300 on date of filing] on my earn account. I know it can be considered a low amount when compared to other users, but for me it is a significant amount.
Doc 157, filed July 22, 2022:
I am a single mother of 2 daughters who are going to college next year. I have supported my parents and my daughters by myself for whole life. I am struggling hard for living. I saw Celsius advertisement and promotion through media and deposited my cryptos which I purchase at the top price from Coinbase Pro last December. My cryptos on the Celsius are maybe not big money for Mr. Mashinsky and his high salaried staffs ($30,000 monthly income after filing Chapter 11), but it is huge amount of money for my poor family. Like many other depositors, I and my family are severely impacted both in financial and mental health by the bankruptcy and locked up cryptos. I always check the app if my cryptos are still there. I can’t focus my job or sleep. I deposited my cryptos on the Celsius because they always claim that Celsius is SAFER than traditional banks or even other Crypto companies through the medias.
Doc 156, filed July 22, 2022:
This has an immense impact on my life and finances as I have almost $43,000 frozen in my account without the ability to access. Like many others, I am very close to retirement and based on information shared, felt that this was a very good platform.
Doc 155, filed July 22, 2022:
I, like many others, have my 6 six figure life savings currently trapped within Celsius Network. I made the decision to move my cryptocurrency which I have been slowly building up since 2017 to Celsius Network due to my understanding that they were providing loans that were over-collateralized to individuals and institutions.
Doc 154, filed July 21, 2022:
I have—at this time–$120,000.00-worth of hard-earned funds in Celsius…
The amount of Crypto that I’ve entrusted to these criminals represents a massive portion of my entire savings. A portion of this Crypto was purchased with money earned from 20-year EE Bonds that I purchased every month while I served as a Rifleman (0311) in the USMC, from which my discharge was Honorable. … The funds that I’ve invested have taken a lifetime to raise. Life will be hard without these funds, even if there are no emergencies. If there is an emergency, then there is simply no way that I could stand against it without these funds; it is crucial that they are returned to me.
Doc 153, filed July 22, 2022:
Even worst I convinced my wife to take her money from her bank and converted into usdc to deposit into Celsius, now she has 12.000 Euros in Celsius account. Since I started to buy Bitcoin in 2018, I saved every euro from my salary to invest in a future where I could feel safe and protect my family, now I feel that lost all after they canceled withdrawals and I want to die, my life has become a complete mess, a lot of depression and I have one month not sleeping and feeling miserable due Celsius.
I have right now 1,80 BTC [~$42,000 on date of filing] in Celsius and that’s the money I’m planning to give to my daughter when I pass away, please help us many people is suffering due Alex.
Doc 152, filed July 21, 2022:
I wanted you to know that I have my life savings held up in a Celsius Network account. The impact of not being able to withdraw my deposits has left my family in limbo and uncertainty of what the future holds for us financially. The filing of bankruptcy by Celsius Network LLC has added a lot of stress to me and my family. Depending on the outcome, we will need to delay our retirement plans and continue to be in the work force instead of enjoying our retirement. We will be forced to make up for the deposits we will potentially lose.
Doc 149, filed July 22, 2022:
I am a depositor with Celsius and I currently have 7.1599751 BTC (Bitcoin) [~$73,000 on date of filing] + 54.666429 ETH (Ethereum) [~$86,000 on date of filing] locked on the platform, some of which is being used as collateral on various loans. I have already been liquidated on 4 of those loans as it was not possible to pay off the loan (which I had the money to do so) due to the locked status that Celsius imposed on it’s customers.
This accounts for almost all of my life savings which I invested in over a year ago and placed in my Celsius account earlier this year before the company collapsed. This is my life savings from more than 10 years of hard work and I cannot tell you how distressed and lost I am about what to do.
Some of this collateral was also funds that my family asked me to invest for them and I cannot bring myself to tell them what’s happened and am extremely depressed and have basically shut down mentally and cannot work or see friends due to this deep depression. I will never recover from this financial loss.
Doc 148, filed July 21, 2022:
If I were to never get my funds back I would recover, it would take time and some of the life goals I have would be set back further than I would like. But many people would be taking such a devasting blow that recovering would, at least seem, almost impossible. To build homes. To start families. To invest in businesses. To escape debt. To feed themselves. The list of possibilities better than allowing these crooks to get away with customer funds is infinite.
Doc 147, filed July 21, 2022:
Like many others, I had savings deposited into Celsius Network. I believe the total amount was about $5000 when Celsius froze all withdrawals. This may not be a lot of money to some but it is a lot of money to me and I worked hard to obtain it. I trusted Celsius Network with my savings as they advertised I could withdraw my money at all times. This wasn’t actually the case.
Doc 146, filed July 21, 2022:
I personally have 1.67+ BTC [~$39,000 on date of filing] and 83.9+ ETH [~$128,000 on date of filing] being held by Celsius. I am a retired school teacher and funds of that magnitude are highly significant to me.
Doc 145, filed July 22, 2022:
Currently I have my entire life savings & retirement invested in Celsius in the stable coin USDC in the amount of $205,001.66 I cannot begin to tell you the level of devastation and horror I felt when Celsius froze withdrawals.
Having my funds frozen has been devastating to me and my family both financially, mentally, and physically. I cannot sleep most nights and am over-whelmed with worry and dread for my family’s future. I have two small children. A 3-year-old daughter and a 2-year-old son. I am the sole bread winner for my family, and I pride myself on making smart financial and parental decisions for them to provide a better life and a bright/positive future.
I was going to be using my funds to finish building my home and complete the construction of my property that has already been underway for over 1 year. I am currently left scrambling trying to figure out ways to get myself out of this mess that Celsius has put me in.
Doc 144, filed July 21, 2022:
My wife and I are Celsius customers who have approximately $140,000 locked on Celsius…. Many lives have been destroyed by Celsius.
Doc 143, filed July 22, 2022:
I have well over $1,300,000 in this custody account which was worth almost $2,700,000 less than 12 months ago. I chose to move it into the custody account under the assumption that it was safe due to the well-understood definition of a “custodian” as well as Celsius’s own terms and conditions…
Doc 142, filed July 21, 2022:
I am a hardworking middle class husband and father who is struggling to make ends meet, every single week. At the moment, I have under $1,000 in my Wells Fargo checking account, which, as a result of the freeze, is my only source of funds to provide for my family. I live in California, where everything is egregiously expensive, and there is absolutely no way that I can continue to provide without access to my assets at Celsius. I request an immediate release of my funds under several pretenses, the first and foremost reason being that this is an EMERGENCY situation, simply to keep a roof over my family and food on their table.
Doc 140, filed July 21, 2022:
Thousands of everyday hard-working people and families stand to lose more than they can recover in their lifetime, while Alex Mashinsky, the CEO of Celsius will walk away a wealthier businessman. This is not justice. This is not right.
Doc 138, filed July 22, 2022:
I, myself, have a little over $20,000 in stable coins frozen in Celsius’ earn program. Not having access to that amount of money is devastating because I worked hard to save that up and could be using that money to pay off debt or bills in a time when prices, and inflation, are running rampant.
Doc 137, filed July 22, 2022:
I am the mother of [redacted] who filed claim. As she mentioned she is a single mother of 2 daughters, and she has supported me and my husband for whole her life. She is struggling hard for living.
Doc 136, filed July 21, 2022:
I am writing to you today as one of the thousands of unsecured creditors in the Celsius case who listened to the promises of Alex Mashinsky and transferred my entire retirement and life savings into Celsius in order to receive yield. I did this because I was led to believe that this was a safe alternative to a bank savings account. Alex Mashinsky told us, whereas banks charge customers up to 29.9% interest on credit card debt using customer money and keep all of it for themselves, with Celsius we share the interest with you and eliminate the risk…
It was devastating to learn, when withdrawals were stopped on June 12th and the truth started to come out, that they took my carefully accumulated life savings, part of which were the proceeds from the family home I had just sold in late 2020 in preparation for a downsized retirement, and recklessly exposed them to enormous risk, mismanagement and loss.
Today, not many months from retirement, I face financial ruin and a very bleak future if those funds are not made whole to me again and in kind. I divided my investment between a US dollar stable coin USDC to earn high yield now to live on; and some pristine cryptos that have an incredible upside potential, in the next five to ten years, to grow to several million dollars to keep me in my old age and to pass on to my children.
Doc 135, filed July 21, 2022:
As a personal plea, in which I am echoed by numerous depositors. I am a retail investor with a good portion of my life savings on the platform. I put my crypto assets as well as a good portion of my bank savings in Celsius relying on the fraudulent assertions of the Celsius executive management team, who attested repeatedly that our interest payments were based on over-collateralized loans with delta neutral risk. I also recommended this platform to friends, who are now also in the same situation.
Doc 132, filed July 21, 2022:
I (58 years old) saved hard for my pension gap that I have in order to bridge two years financially without any worries. before I start receiving state pension and old age pension. Now that has become very insecure and you are my (our) savior so as not to end up in a financial hole later. I will soon need my money to be able to eat and live.
My wife … (56 years old) has also opened a Celsius account on my advice and she has largely deposited her savings into it. My 80-year-old mother … also opened an account through me because the interest on the bank in the Netherlands has become 0% and she can continue to pay her bills carefree. After seeing another AMA of Alex M, the last one, was also where he said; open an account with us, it’s safe, you can win $1000 bonus!!! Finally, on June 11, 2022, my 23-year-old son opened an account and deposited his piece of bitcoin into it and a week later everything was locked. He was shocked and angry with me and said because of you I am now in this misery.
Judge Glenn, I could cry and feel very guilty for advising my family to Celsius. In retrospect it sounded too good to be true, we say in the Netherlands.
Doc 131, filed July 21, 2022:
On May 27th, 2022, after viewing several recent videos of Alex Mashinsky promising that my crypto assets would be safe and that I would receive 6.50% APY on my BTC and 6.00% APY on my ETH, I transferred 0.868842 BTC [~$25,400 on date of deposit] & 11.670072 ETH [~$21,000 on date of deposit] onto the Celsius Network. I was also promised $550 in 30 to 90 days as a promotion to entice me to transfer my assets to Celsius. I found that after I transferred my crypto assets that the actual APY quoted was only on a small portion of my holdings. Still, the actual APY was about the same as I was receiving else ware, so I decided to stay with Celsius to receive the promotional rewards. Just 16 days later, and after receiving no APY or rewards, I was informed that I could no longer withdrawal my assets.
Doc 129, filed July 21, 2022:
I am a Brazilian worker and I put all my money on this platform, as ALEX (CEO) said that we would be safe from the risks of banks and would offer a loan with an interest rate compatible with the market. It makes no sense to disappear with the money where it has a collateral, that is, I deposited 200,000 USD in bitcoin to withdraw the loan of 50,000 USD. The goal was not to have to sell my bitcoins during this market rally. Therefore, the collateral was practically 4x, or in some cases 2x, the loan amount.
Doc 127, filed July 21, 2022:
I placed my entire EIDL [Economic Injury Disaster Loan] loan, $525,000 in Celsius to earn an APY to help pay back the 3.9% interest on the loan while I was in the process of deciding on if I would keep the EIDL or use it on my business.
The funds in my Celsius Custodial account are not mine, they are the US Governments and I my entire business is secured and backed by these funds. If they are not returned, my business would go bankrupt, my 15 employees would be let go, and 14 years of my life’s work lost and at the age of 49 years old, I would have to start over with nothing. The thought of losing this money has left me depressed, suicidal, and without words. Please return our money.
Doc 126, filed July 21, 2022:
I have been a customer for about 1 year now and have transferred about $250k into Celsius. I was convinced by Alex Mashinksys AMA’s on de-banking and moving our money into Celsius.
Doc 125, filed July 21, 2022:
I’ve lost my farm here in Ireland , family are left homeless . I’m mentally unstable . Family are distraught with my decisions of trusting Celsius and promising them a better future.
Doc 124, filed July 21, 2022:
I have been a loyal Celsius customer since 2019 and feel completely lied to by Alex Mashinsky. I watched every single AMA (Ask Me Anything) each friday since sign-up and week in and week out Alex would talk about how Celsius is safer than banks because they supposedly don’t rehypothecate and use fractional reserve lending like the banks do. “The banks are not your friends,” he would constantly say.
The money I deposited is meant as my life savings and I know I’m one of many in this situation.
Doc 118, filed July 21, 2022:
I come from India to make American dream a reality and in the process, I worked hard and there are weeks that I worked for 84 hrs. a week just to make some savings, buy a home and build a life here. But all I get is disappointment and got cheated I invested all my savings for last 3 years and was able to get one full Bitcoin. Alex kept saying our investments are safe with Celsius, though there was lot of FUD on Twitter I believed Alex. I am just a normal guy trying to make a living here and keep my family safe and happy.
Doc 117, filed July 21, 2022:
I have held to the belief that Celsius would not engage in such risky behaviors as what has been revealed lately, and am shocked and appalled that my life is now back to square one as far as earning potential and safety for my family and young children. My life savings is gone thanks to these people.
Doc 116, filed July 21, 2022:
I sent Celsius a good part of my retirement and also my wife’s last year. Alex Mashinsky has said over and over how this was a safe alternative to banking, and led me to believe interest was generated with fully collateralized loans.
Doc 115, filed July 21, 2022:
I have approximately $7500-10k depending on BTC price locked up and cannot withdraw from my Celsius account. I am a teacher that took a $2500 usdc loan from Celsius last summer. I do not get paid in the summer and needed some funds to get through summer so I wanted to give Celsius a try as they advertise low interest loans by utilizing collateral. I transfered $7500 worth of bitcoin as collateral for this $2500 USDC loan.
As the price of BTC started to come down this June, I kept getting emails about margin calls in about myCelsius account and how I needed to add more BTC to not get liquidated, so I deposited 2500 worth of USD to pay off the loan so I could get my collateral BTC back but the site would not allow me to transfer or make any payments, and as a result, most of my BTC collateral was liquidated and stolen by Celsius to this point. The site was frozen and I could not even withdraw my $2500 USD out that I had just deposited. I have 2 children ages 4 and 6 and these funds could have been used for their development and family obligations.
Doc 114, filed July 21, 2022:
I am just a 50 year old, healthcare worker. I don’t have much compared to others, but it is a lot to me and my family. All my crypto is sitting in the CUSTODY account program. Today, the value of my holdings is $19053.45 but of course, it was worth double when I purchased and I am sure it will triple in the near future. I just want my crypto back.
I am frustrated, cant sleep, my husband does not know this happened. Please do us justice. Celsius lied to us, watch the AMA videos and you will see why we all believed.
Doc 113, filed July 21, 2022:
I am a Celsius customer with over 100k worth of deposits that are locked up in Celsius. This amount is about 90% of my life savings. Losing all of my savings will have irreparable consequences on the well-being of myself and my family. I feel ashamed to put all my trust into a company that has clearly participated in near fraudulent activity. I can’t imagine how many more years I will need to make back the money I lost.
Doc 112, filed July 21, 2022:
I am one of the customers who has my funds stuck with Celsius. Celsius is a company registered in the USA. Now USA being the frontrunner in almost every aspect from big businesses to new technological innovations, everyone would expect that if Celsius got its registration license in the USA, they must be running a legitimate operation, as USA is known to be strict with legal compliances related to businesses. Moreover, CEO of Celsius, Alex Mashinsky, prior to the halt of withdrawals, used to come live every week and assure the customers that Celsius is fully transparent and customers’ funds are safe. I am from India and I have $14,000 stuck with Celsius. This amount is a huge amount for an Indian. An average Indian makes $5000 a year. With my $14,000 stuck with Celsius, I have been very stressed and suicidal since the halt of withdrawals. I am the sole breadwinner of my family and its my responsibility to take care of my family members and provide food on their plates. $14,000 might not be a huge amount for an American but for me, an Indian, it is years of savings.
Doc 111, filed July 21, 2022:
I started reviewing e-mails on my phone. I saw that there was an e-mail from a Crypto company that was holding about $40,000-$50,000 worth of my assets (depending on current market price). The subject of the e-mail stated that it was an important message. I opened the e-mail and began to read. By the time I finished the e-mail I had collapsed onto the floor with my head in my hands as I fought back tears.
I did my best to go the office and face my peers on June 13th, 2022. It was impossible to focus on my tasks for the day. It was like a living nightmare. However, it was nowhere near as bad as when I returned home to face my family.
My family is what would fairly be considered middle class. My wife is a teacher and I am a sales manager. It is my job to manage the family’s finances. Throughout the past two years I took an interest in trading cryptocurrency. I made a respectable profit and decided that I wanted to start a nest egg with the 7 Ethereum (valued at approximately $25k at the time) that I had earned through my trading efforts. Through a recommendation of a friend I came across Celsius. I reviewed their web site and began doing research by watching their AMA’s and reading reviews on the internet. I liked what I saw as Celsius seemed like a very transparent organization that would allow me to earn returns on my cryptocurrency as if it was in a bank.
Every day since June 13th, 2022 I have gotten up and felt terrible for a portion of the day. I look at my children and think how the money that Celsius seized from me could be put towards improving their lives. It could have been in a college fund or it could have been put towards a vacation for them to enjoy. Instead, our hard earned money was gambled away like nothing by the operators of Celsius.
Doc 110, filed July 21, 2022:
I have been a customer of Celsius for nearly 2 years. During this time I took out two crypto backed loans. I used the money to finance a business venture. Last month one of my loans was closed and my collateral was liquidated. I would have added more collateral, but was advised not to do so given the fact that Celsius had paused transfers and withdrawals. The liquidation of my loan has costed me approximately $21,000. Presently I have approximately $65,000 in savings on the Celsius platform. I put my savings there because I felt I could trust the platform and company. This trust was generated by countless hours watching Alex Mashinsky give press interviews in which he sold Celsius as a safe and secure option for savings and lending. I work in technology and have an excellent understanding of blockchain and crypto currencies. I performed due diligence on Celsius, only to learn that I have been lied to.
Doc 109, July 21, 2022:
I’m writing in regards to Celsius Network and their practices that have left my family and I in dark times. I joined Celsius Network earlier in the year and had deposited $15,000. Everything I had remaining for a purchase of a home for my two children and wife here in SouthWest Florida. I trusted Celsius so explicitly due to Alex Mashinsky constantly broadcasting what I thought were truths and axioms that the company and himself lived by. How clearly I was wrong. I took out a $1,000 and $5,000 loan and was unable to add necessary collateral to two margin calls that were enacted during their pause of transfers and withdrawals. The collateral was available and ready, only to watch nearly the entirety of my crypto evaporate away with no recourse to solve. I feel absolutely disgusted with what has since unfolded.
Doc 108, filed July 21, 2022:
I had hundreds of thousands of dollars in USDC and Bitcoin deposited in Celsius. As part of the decision to store my assets on Celsius over the past 14 months, I listened to, and believed, Mr. Alex Mashinsky speak to the trustworthiness of Celsius on live streams, in print, and as part of the Celsius AMA (“ask me anything”) conferences he held on Fridays.
Doc 107, filed July 21, 2022:
I am one of many Celsius users with crypto on the platform. I deposited stable coins, believing that the yield was being generated from over collateralized loans, which Mashinsky is on record stating many times. I watched the AMAs weekly, youtube videos and twitter communications from Mashansky; he misled all of us, stating he had 2 billion in reserves, no exposure to risky practices including overleveraging. Had I known the loans were under collateralized, the balance sheet deficit, the staking, trading, etc. I would not withdrawn my coins. I avoided Terra/Luna, instead choosing stable coins backed by dollars.
Doc 104, July 21, 2022:
I am a female client from Australia with crypto deposits on the Celsius Network. Similar to many other retail investors, I and my family are severely impacted both in financial terms and mental health by the bankruptcy and locked up funds. I am expecting my third child in 2.5 months and need the money to pay for the doctor, hospital and expenses. Also, my aunt is seriously ill and needs my financial support for her major operation (please refer to screenshots provided below). However, all of my savings have been tied up in the Celsius network. I was planning to withdraw from Celsius to fund my birth and my aunt’s operation in late June, but due to the withdrawal halt, I don’t have access to any funds and my life has become so miserable now. I am worried that my stress due to Celsius’s situation will affect the health of my unborn child. Also, my two other children are still in primary ages and my family also need to fund locked in Celsius for their education.
Doc 103, filed July 21, 2022:
I have over $25,000 worth of cryptocurrency deposited in a ‘Custody’ account with Celcius. I strongly feel that Celsius, in particular Alex Mashinsky has lied to the community about the safety of our assets. I feel like I have been lied to and mislead. I am embarrassed that I have so much money tied up in what now seems to be a scam and mismanagement of funds. It has affected me personally and now have so much anger with myself for getting my family in this position.
Doc 102, filed July 21, 2022:
Over the last year, I’d put most of my money into Celsius. I had done some research that led me to believe they were insured for any losses. As I watched companies (who had due diligence teams) put hundreds of millions into Celsius, I began putting most all of my digital currencies onto their platform. I never realized they would do the things they’ve done. I’ve put a lot of time, sweat, and money into mining digital currencies over the last year, and I really hope it’s not just all gone, now. Weekly, I watched Celsius’ “ask me anything” videos and would watch Alex himself say repeatedly they’re not doing shady things with our money … but it seems they were. I feel betrayed by Celsius, and shame that I even went so far as to recommend Celsius to friends and family.
Doc 101, filed July 21, 2022:
[I am] a Finnish Citizen who has invested over 50 thousand USD for Celcisus Network’s loan service. I have always been very conservative investor and invested to Celcius’s service ONLY, because Alex Machinsky has continuously stated, every Friday, that they are secure. They have made claims such as:
- Celsius is an alternative to conventional banks, they are safer than banks
- They have over 2 billion in their balance sheet
- They raised 750 million "to secure customer assets if something goes wrong"
- Continuously assured that the funds are safe
And so on. The whole company is a lie, we were lied to! We were deceived, I am embarrassed, sad and angry that my life savings were invested to a “bank” which was a lie. This will have significant ramifications to my retirement and it is beyond awful.
Doc 100, filed July 21, 2022:
Much of my life’s savings are currently held hostage on the Celsius platform. Alex Mashinsky week after week promised the community that our funds were safe and not being used in any risky lending. Every week during his AMA’s he promised that Celsius had the funds to cover all user assets and that under no circumstances were our funds at risk.
I have elderly parents whom I care for and the assets currently held in Celsius is to help them live out their last years in comfort. I pray I will see my funds returned in full.
Doc 99, filed July 21, 2022:
When I joined Celsius i followed every AMA and live to listen to what the CEO Alex says and update, and from what I alway heard the investment where safe, and not speculation was used in our money, plus he said multiple time they had enough cash, more then any one else to cover any issue. Some of this live were done days before they freeze assets, so Alex was lying and he knew was a lye but he kept saying that. My brother tried to suicide and I had mental disorder and I cannot sleep now, I havent slpet since the account was frozen.
Doc 95, filed July 21, 2022:
About 6 months ago I deposited 20k in BTC and ETH to Celsius (my hard earned life savings). I followed the company for more than a year before I decided to let them hold my portfolio. I spend 100+ hours listening to Mr. Mashinsky and the communication of the company. Every Friday they uploaded video’s on YouTube discussing the policy and the low risk you take as a costumer. Quotes that where said every week for over a year: “The worst thing that can happen is that everyone gets their coins back”, “We have 2billion dollars on our balance sheet so there is zero risk in depositing your crypto on Celsius.”, “Celsius is transparent and shares all of it’s financial data.”, “Celsius is safer than holding your money in the bank.”, “Celsius will take full responsibility and will make sure depositors are always prioritized.”, “Celsius is more regulatory compliant than all of it’s competitors.”
Doc 94, filed July 21, 2022:
I’m a Celsius depositor. My account balance is in the mid six figure range. The balance was in the seven figure range last year when cryptocurrency prices were at their peak.
I consider myself to be “above average” in terms of understanding financial markets, as I hold an economics degree, but I am by no means an expert. The primary reason I was comfortable with Celsius was because Alex Mashinsky repeatedly stated on numerous youtube “AMAs (ask mashinsky anything)” and interviews that the yield paid on our cryptocurrency deposits was generated with overcollateralized lending. While I am no financial guru, to me, overcollateralization meant that if a debtor could not meet their obligations that Celsius would liquidate the posted collateral and ensure that the lent crypto holdings were retained.
While I am fortunate to continue to be able to support my family despite this mishap, I worry about the financially vulnerable individuals who put their life savings into Celsius because they were encouraged to do so by Alex Mashinsky, despite the fact that he knew that the company was struggling from a financial standpoint. Single mothers, retirees, and other vulnerable individuals absolutely need their savings back.
Doc 92, filed July 21, 2022:
I am very affected by Celsius Network freezing my account and filing bankruptcy due to lack of risk management and false promises. Even though my assets were not in six figures, that was the majority of my life savings and retirement fund. As per their marketing and promotion, they promise withdrawal of our assets anytime. But When I tried withdrawing my cryptocurrency on June 13th, they did not let me withdraw.
Doc 90, filed July 20, 2022:
I am one of the many customers affected by these proceedings with a large portion of my savings…
[B]eginning on 13 June 2022, I was stonewalled into having a loan with Celsius liquidated. This was primarily due to Celsius freezing transfers which took away all ability for users to manage their loans on their own. This forced users to rely on their support team, which was not able to react in time. Celsius froze transfers on 12 June 2022 and directed customers to contact support in order to resolve a margin call, advertising a 24-48 hour response time. On 13 June 2022, I received notification of a margin call and e-mailed support attempted to call their customer support line only to sit on hold for 4 hours only to be hung up on. My loan was liquidated on 18 June 2022. The first time I heard back from Celsius regarding this matter was 21 June, 8 days after initial contact, saying nothing can be done about it now. I requested a refund of the liquidation fee to show a sign of good faith to the customers only to be ignored again.
Doc 89, filed July 20, 2022:
I am an unaccredited investor who trusted Celsius with over $530,000 of Crypto Currency as of today Wednesday July 20th. As of April 2nd, 2022, this bucket of Crypto was valued over $1,000,000. I moved the bulk of these funds into Celsius in February of 2022 because I would Watch Alex Mashinsky on his weekly AMAs published on YouTube. He reiterated time and time again on Twitter and on these AMAs that the company was over collateralized and that should anything go wrong they have more than enough money to make all depositors whole. He also started that he himself would personally compensate investors to make them whole if ever needed.
Doc 86, filed July 20, 2022:
I was one of many common retail investors that invested my money with Celsius after their constant advertisements and promotions of “Earn great & safe APY returns like the rich. You can access your money at any time, your crypto is always safe with us.” On and on the false promises went.
As a disabled Combat Veteran who served in the Afghanistan Campaign, it hasn’t been easy for me to maintain employment and save money to build a future retirement for my family. So, I have been saving for years to amass the sum that I had in Celsius. To Celsius I am but a minnow in a sea of whales. My 36k loan to Celsius that took me nearly a decade to save for with dedication and hard work for feels completely insignificant.
Please help us common tax paying citizens who were just trying to get a fair shake at trying to save for the future while beating inflation rates.
Doc 83, filed July 20, 2022:
I share a similar story as other depositors and investors of Celsius. I started depositing various crypto assets with Celsius Earn a little over a year ago (March 2021). I trusted Celsius with my funds and continued to do so despite market volatility and rumors about Celsius solvency on Twitter. CEO Alex Mashinsky reassured everyone on various media platform that Celsius is financially strong and had enough collateral to weather the downturn in the market. I left my all of my ETH (about 60 ETH [~$92,500 on date of filing]) on Celsius in hopes for a modest return (not enough to beat current inflation) and now, like others, my ETH is locked and I have no way to access it.
Doc 82, filed July 20, 2022:
I am a Celsius amount holder, with .85 Bitcoin [~$19,900 on date of filing], 1 ETH [~$1,500 on date of filing], and a various amount of other crypto currencies. I am writing to ask you to not grant Celsius to move forward with their current plan with Mashinsky, or any current executive leadership. I was clearly and unequivocally misled to believe that my funds were not used in risky leverage trading, and that they were completely secure unrelated to market conditions. It is obvious that there has been reckless misuse, and Celsius is not taking responsibility for their actions and cannot be trusted.
Doc 78, filed July 21, 2022:
I am writing to you today, as a Celsius user (since January 2021), that currently has my life savings in crypto locked and inaccessible. Alex Mashinsky and the Celsius Management Team expressed multiple times, on Tuesday Twitter Spaces and Friday YouTube AMA’s (Ask Mashinsky Anything), the following phrases: “UnBank Yourself”, “HODL with Celsius”, “Banks Are Not Your Friends” and “Do Good, then Do Well”.
Retail investors have even expressed “suicidal statements” on Twitter as a result of this unforeseen incident. I even referred friends and family to Celsius and their life savings are now in jeopardy.
Doc 71, filed July 20, 2022:
As of July 13, Celsius Network claims they are no longer liquidating retail loans or demanding margin calls, but accepting loan repayments and continuing to hold coins posted as collateral. As a retail user with two current loans due on August 14 and August 28, I want to honor my obligation of paying back the principal and interest on my loans so that I may receive my ~4x collateral back. However, it makes no financial sense to send money to a bankrupt company when it is unknown what will happen to my collateral. Sir, I am requesting special consideration for all future loans that are due and especially the ones that are ~4x collateralized.
Doc 68, filed July 19, 2022:
My life savings were in Celsius. I trusted Alex. I pray and hope everyday you are doing everything in your power to rightfully return deposits back to customers. I can’t tell my wife and kids our retirement and dreams have been stolen from us. Life is stale, we need updates and silence is not the answer. Please I request you to help put the interest of unsecured creditors, or as Alex famously called his “community” first.
Doc 65, filed July 19, 2022:
I am a Celsius customer with a little over $15k worth of deposits that are locked up in Celsius. $15k may not mean a lot to some people, but it is about 65% or my life savings.
Losing all of my savings will have irreparable consequences on the well-being of myself and my family. I am ashamed, humiliated, and quite frankly, disgusted, that I put all my trust into a company that has clearly participated in near fraudulent activity. I will be spending years trying to make back the money I lost.
Doc 64, filed July 19, 2022:
I only have about $3500 (at today’s value as of July 19th). But for me it is a very large amount. It is approximately ½ of my investment portfolio. The only reason I put it there was because I thought Celsius was safe. I was only earning 3-5% on my BTC/ETH, and since ETH when it is staked to ETH2.0 earns about 6-7%, I figured it was fine. The way they (in their weekly AMA’s) explained it, was that the funds were either staked on the net with “safe” options such as ETH2.0 and MATIC. Or that it was lent out with over collateralized loans to individuals/institutions. Instead they took massive risks with them.
Doc 51, filed July 19, 2022:
I share a similar story to many other depositors who have modest amounts of their net worth locked in Celsius. From spending time on various social media forums and groups I have seen the range of devastation this lockup has caused.
I like many others were led astray by Mr. Mashinsky and his lies. We trusted the company was ran in a safe and productive manner because their leader always expressed that. I do not believe these terms of services should be deemed valid. There is zero chance I or others would have become a customer of Celsius if their terrible business practices were disclosed.
Doc 50, filed July 19, 2022:
Like many investors, I have lost a large chunk of my life savings and struggle to live daily with devastation and extreme stress of watching on the sideline feeling powerless over my money, which I entrusted with Celsius to manage. Alex Mashinsky and Celsius Management have been engaging in deceptive marketing of their platform and products using catchy phrases such as “Unbank yourself” and “Banks are not your friends” to imply that leaving funds with Celsius is just like depositing funds on savings accounts with traditional banks, if not superior.
Celsius customer base extends beyond the United States and its impacts are far‐reaching and impacting the lives of Non‐US resident depositors like myself.
Doc 47, filed July 15, 2022:
This has ruined people beyond comprehension: please peruse r/CelsiusNetwork should you have a human interest in what is happening with people who are not as sophisticated as yourself even. The marketing lies, the deceit, and the lack of accountability will be paid in blood by many.
This person preyed on fears of losing money during the next economic downturn and lied about how our money/assets were managed.
Disclosures for my work and writing pertaining to cryptocurrencies and web3 can be found here.