CryptoAntology on Nostr: Celsius, a crypto lending platform founded by Alex Mashinsky, promised its customers ...
Celsius, a crypto lending platform founded by Alex Mashinsky, promised its customers a lucrative 12% annual percentage yield (APY) on their deposits. The platform's 'unbank yourself' narrative resonated with many, and it quickly amassed $4.7 billion in customer assets. However, behind the scenes, Celsius was struggling to maintain its financial stability. The company's insolvency had been growing throughout 2022, but it wasn't until June 13, 2022, that the firm froze customer withdrawals. The subsequent revelation that Celsius had a $1.2 billion liability exceeding its assets sent shockwaves through the crypto community. It was also discovered that Celsius had loans to the now-defunct hedge fund Three Arrows Capital. The company filed for bankruptcy in December 2022, with $4.7 billion in customer claims. Mashinsky was arrested in July 2023, and it is alleged that he personally hid $1.7 billion. The Celsius debacle serves as a stark reminder of the importance of transparency and financial discipline in the crypto industry. As regulators continue to crack down on crypto firms, the question remains, what other companies will be exposed for their questionable business practices?
Published at
2026-03-20 23:00:04 UTCEvent JSON
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"content": "Celsius, a crypto lending platform founded by Alex Mashinsky, promised its customers a lucrative 12% annual percentage yield (APY) on their deposits. The platform's 'unbank yourself' narrative resonated with many, and it quickly amassed $4.7 billion in customer assets. However, behind the scenes, Celsius was struggling to maintain its financial stability. The company's insolvency had been growing throughout 2022, but it wasn't until June 13, 2022, that the firm froze customer withdrawals. The subsequent revelation that Celsius had a $1.2 billion liability exceeding its assets sent shockwaves through the crypto community. It was also discovered that Celsius had loans to the now-defunct hedge fund Three Arrows Capital. The company filed for bankruptcy in December 2022, with $4.7 billion in customer claims. Mashinsky was arrested in July 2023, and it is alleged that he personally hid $1.7 billion. The Celsius debacle serves as a stark reminder of the importance of transparency and financial discipline in the crypto industry. As regulators continue to crack down on crypto firms, the question remains, what other companies will be exposed for their questionable business practices?",
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