Irish journalist reporting:
A crypto investor, Cindy Fong, has reportedly lost access to her digital assets worth around $119,000 after Celsius, a crypto lending platform, halted withdrawals in June 2022, before filing for Chapter 11 bankruptcy the following month. Fong shared a screenshot of her account on social media, revealing that her holdings include Bitcoin (BTC), Ether (ETH), and Polygon (MATIC).
The news has raised concerns among Celsius users who are now worried about the safety of their crypto holdings. Celsius, which was founded in 2017, is a popular platform that allows users to earn interest on their crypto holdings by lending them to institutional borrowers. However, the platform has been facing financial difficulties in recent months, and the bankruptcy filing has left many users in the lurch.
According to reports, Celsius has claimed that its decision to halt withdrawals was due to a technical glitch, but the company has not provided a clear timeline for when the issue will be resolved. Meanwhile, users like Fong are left in limbo, unable to access their funds. The situation has highlighted the risks associated with holding digital assets on centralized platforms, which can be vulnerable to hacks, technical glitches, and other issues.
The incident has also renewed calls for greater regulation of the crypto industry, which is still largely unregulated in many countries. While crypto assets have gained popularity in recent years, they remain a relatively new and volatile asset class, with risks that are not always well understood by investors. As such, it is important for investors to exercise caution and do their due diligence before investing in cryptocurrencies or using crypto platforms.
In the wake of the Celsius incident, many users are now considering alternative platforms that offer greater security and transparency. Decentralized finance (DeFi) platforms, for example, allow users to hold their own private keys and have greater control over their assets. While DeFi platforms are still in their early stages, they are seen as a promising alternative to centralized platforms that may be vulnerable to external risks.
In conclusion, the Celsius incident highlights the risks and challenges associated with the crypto industry. While digital assets offer many benefits, they also come with significant risks that investors need to be aware of. As the industry continues to evolve, it is important for regulators, investors, and industry players to work together to build a more secure and transparent ecosystem that protects the interests of all stakeholders.