Earlier this year, crypto lending service Celsius went under. It was one of the biggest lending platforms and many users deposited a large part of their crypto assets here to earn a nice annual return. However, since the bankruptcy, it seems that these users may be whistling for their money. A new tool shows the amounts involved in a painfully personal way.
Crypto platform Celsius bankrupt
The company recently filed for bankruptcy in US court under a so-called Chapter 11 bankruptcy. As part of this lawsuit, Celsius made a lot vulnerable personal data even public.
By name, by name, the amount of cryptocurrencies they had stored on Celsius and much more information, these users are now on the internet. A tool, celsiusnetworth.comhas even compiled a ranking of the users who have lost the most money.
To be in the top 10 of this ranking, users would have had to have at least $12 million worth of crypto on Celsius. In first place is someone who had over $40 million on the platform! There is a chance that this person will never see this astronomical amount again.
wow. Someone made a searchable website showing real identities and crypto holdings lost in the Celsius collapse.
What a perfectly horrendous illustration of the risks of KYC.https://t.co/2t5abosTyW
— Stephen Cole (@sthenc) Oct 9, 2022
This is obviously a disaster for people who are now on the Celsius list. One of the people in the top 10 of the unfortunate has been in his own house before robbed from tens of millions of bitcoin (BTC).
Criticism of Celsius
Naturally, Celsius was met with a huge amount of criticism for disclosing sensitive information about their own customers. In addition, it is also unknown why Celsius decided to do this and whether this was demanded by the court.
Adding further fuel to the fire was the news that Celsius CEO Alex Mashinsky and other executives millions of dollars had recorded just before they announced that recordings for users were being suspended. All in all, a great fiasco for Celsius and a catastrophe for the unfortunate users.