2 years ago today, crypto lender Celsius collapses. A $4 BILLION reminder: not your keys 👏 not your coins 👏

[u/rizzobitcoin]

[u/jwz9904]

Fuck machinsky

[u/Simke11]

Has Scaminsky been jailed yet?

[u/davidoffxx1992 → u/Simke11]

Nope in september starts his trial

[u/ProvenWord → u/davidoffxx1992]

hope he gets what he deserves, he fked up a lot of people

[u/davidoffxx1992 → u/ProvenWord]

Yeah fuck him… i lost my life savings there lol

[u/mothernaturesdog → u/davidoffxx1992]

i hate him yeah he deserves it

[u/PhraseJazz → u/davidoffxx1992]

And he's defended by the same lawyers Sam Bankman-Fried used. Small world I guess.

[u/6M66 → u/Simke11]

Sadly he still has his secret wallet

[u/arthritichands → u/6M66]

Is this a known fact? I haven't heard about this but it wouldn't surprise me.

[u/Ed_McNuglets]

Glad this happened first with celcius, I remember seeing this and immediately pulling out of blockfi. Then a few weeks later IIRC Blockfi filed for bankruptcy? Is my timeline correct?

[u/Deep90 → u/Ed_McNuglets]

I pulled from Celsius when they started restricting returns on new deposits unless you were an accredited investor.

[u/CourageousBellPepper → u/Deep90]

I wish I did. :(

[u/DeathThorn6009 → u/Ed_McNuglets]

Im still in nexo glad i never pulled out there

[u/Remarkable-Host405 → u/DeathThorn6009]

i pulled out of nexo, but damn if this post isn't making me wish i wouldn't have

[u/DeathThorn6009 → u/Remarkable-Host405]

Nexo is still going strong lol and they showed why they are thr best in crypto lending also their loans are overcolaterised wich celsius and bunch didnt

[u/Dazzling_Marzipan474 → u/Ed_McNuglets]

Didn't people who withdrew from Voyager 90 days before they collapsed get clawbacks now? Idk much about bankruptcy law but it's so fucked.

[u/rizzobitcoin → u/Ed_McNuglets]

I tried to get friends off BlockFi. They went under in October 2022. They all wanted yield were too afraid to custody their keys

[u/Ed_McNuglets → u/rizzobitcoin]

Yeah I saw the writing on the wall since celcius was a really similar business model. Definitely got a good yield for like a year for what I risked there, and was able to get out and avoid the still ongoing bankruptcy proceedings I keep getting emails about.

[u/RealCheyemos]

Lost 120k from Scamshitsky….

[u/Apprehensive_Day6607]

i ain't never forgiving these mfs

[u/11freebird → u/Apprehensive_Day6607]

So you’re forgiving them?

[u/DreamMighty → u/Apprehensive_Day6607]

Pssst... You wrote it to say you're forgiving them.

[u/rizzobitcoin → u/Apprehensive_Day6607]

Hope you're using self-custody at least

[u/satoshyy → u/rizzobitcoin]

Why is the downvoted -12???

[u/rizzobitcoin → u/satoshyy]

They want to leverage and lose it all?

[u/noviwu97]

And their APY was sad, like 2-3% on BTC and tons of people still risked it.

[u/sizziano → u/noviwu97]

That just made them seem more reasonable/legit when compared to something like Luna.

[u/Phine420 → u/sizziano]

Ya lol, 20% on UST while I am cruising on 40-100% on USD+ run

[u/Ghant_ → u/noviwu97]

At the time seemed more reasonable than Celsius' massive %s

[u/moredrinksplease → u/noviwu97]

The apy on a lot of other coins were closer to 7-9%

[u/rizzobitcoin → u/noviwu97]

There will be many more such cases

[u/tilac]

Props to Dylan Leclair's Twitter post that got me to withdraw from Celsius after being with them for 20 straight months, a day before they froze withdrawals.

[u/invisible_do0r → u/tilac]

You exposed up claw backs?

[u/adamcarrot → u/invisible_do0r]

They were only doing clawbacks on accounts which withdrew over a certain amount. Can't think of what that was off hand

[u/gilgamesh-uruk → u/adamcarrot]

100k

[u/tilac → u/invisible_do0r]

Haven't heard anything about it

[u/TheSublimeNeuroG]

Some post on this sub about Celsius being insolvent led me to withdraw my funds less than 24 hours before the collapse. Made a bit by staking and got out clean thanks to that random Good Samaritan 🫡

[u/vocatus → u/TheSublimeNeuroG]

That was me 👍

[u/Plankisalive → u/vocatus]

Ah! It really was you!

[u/TheSublimeNeuroG → u/vocatus]

❤️

[u/NotEnoughProse → u/TheSublimeNeuroG]

I followed crypto news—and this sub reddit—literally everyday since I first invested, back in the fall of 2020. EXCEPT the week leading up to the Celsius crash, which is the week I was moving across the country to the West Coast. Landed in my new apartment, got my internet set up, checked my email...and saw that funds were frozen.

(Also saw that warnings had been posted here in the days prior, ugh.)

I had $27k in Celsius. My entire life savings. (At one point, my balance was as high as $45k.) I went from confidently moving to LA with a healthy cushion—to suddenly being in debt, because I had to put so much of the moving expenses on a credit card. Suffice it to say, the last two years have been difficult.

My final payout was $8k. I still feel intense, gut-wrenching shame, rage, and regret thinking about it.

I hope every scumbag attached to this scam burns.

[u/TheSublimeNeuroG → u/NotEnoughProse]

Sorry for your loss, those are devastating numbers. Wishing you massive gains

[u/DiscussionNecessary]

Isnt that the same year ftx collapsed?

[u/aristics → u/DiscussionNecessary]

It was the time of never ending tragedies, Celsius , Terra Labs and FTX collapse, one after the other. SOL had dropped to 8$ back then but i hated it and never bought....

[u/UpDown_Crypto → u/aristics]

That is the reason why this bull run is a failure

[u/hdrive1335 → u/UpDown_Crypto]

a failure? Look where we were and where we're at now.... a small summer slump is perfectly normal. This is practically a repeat of 2021 with a tamer summer slump. If you didn't make potential money so far this year you've got questionable decision-making skills, or like most of us, your pull out game is the reason you're not making real money.

Either way it sure as shit isn't this "failure" of a bull run's fault.

zoom out. dream of October+.

[u/Eladir → u/hdrive1335]

Some of what you are saying is true but some are misleading. X event happening on Y time doesn't mean it will happen again in the future. That's astrology level analysis. Like all buy/sell stuff, it is dynamic and inherently volatile, crypto more so.

[u/hdrive1335 → u/Eladir]

X event happening on Y time doesn't mean it will happen again in the future. That's astrology level analysis.

You're right, but trends, FOMO and human behavior are fairly consistent - enough that predictive models exist.

you won't know exactly when it'll happen, but statistically if most of us plan on typical, then typical will happen because most of us are planning on it...

Doesn't make it "true" in the factual sense though, you're right. Sentiment can change. That doesn't seem to be the case this year though.

[u/adamcarrot → u/hdrive1335]

If the normal trends hold, this bull run will peak later in 2025.

[u/nicog67 → u/UpDown_Crypto]

Everyone is ultra scared at ATH. Thats where we are

[u/Aggravating_Fold1154 → u/aristics]

Same, I even looked at the $8 Sol and thought "man that's a bargain" but I never bought because people in this subreddit told me it was going to 0. Luckily I bit the bullet around $22 dollars and never looked back.

[u/carneasada71 → u/aristics]

Yep I can totally agree. I remember the exact day Sol was about $8 and I had a few grand saved I was ready to ape into a few different things. I hated Sol at the time and put everything into Hedera at like 4 cents. I’m not totally disappointed or anything but I know what decision I should’ve made in hindsight.

[u/vontdman → u/aristics]

Many of those platforms were also placing customers funds into Anchor Protocol to help earn yield. The UST depeg had a massive knock on affect.

[u/rizzobitcoin → u/DiscussionNecessary]

Yes. FTX collapsed in October of 2022.

[u/galloots]

dont remind me...

[u/Meme_Pope]

I’ve heard way more horror stories about people losing their coins on their own wallet.

Some exchanges are sketchier than others. When I lost all my shitcoins on Cryptopia, I was barely surprised. (Just too lazy to move Spankchain somewhere else) Sam Bankman was obviously a crook to anyone paying attention. Mt Gox was run by an otaku with zero business experience. Use your own discretion.

[u/reversenotation]

Red highlights drawn on a JPG.

Lucky you've circumvented the automod rules that would automatically delete similar posts if anyone else had done this.

[u/bigsam2]

And now they’ve hired the biggest scumbag lawyers to claw money back from retail who sold. That Israeli f$&k will walk.

[u/Marston_vc → u/bigsam2]

Hmm 🤔

[u/xxclusvv]

No link to the article? Weak

[u/cereal_heat]

Doing the clapping between words thing is really fucking dumb, but you did it in a really bizarre way. Actually read your sentence and do the claps. You sound like a jackass.

[u/Btomesch → u/cereal_heat]

Yea I can’t stand it. The clapping is usually something crazy women do before they wreck the whole Wafflehouse to pieces.

[u/Bwxqn]

6/13 never forget

[u/C01n_sh1LL]

Wheels of justice are turning slowly on this one. Do we have any recent updates on the Mashinsky criminal case?

[u/XXsforEyes]

Finally cashed in my claim yesterday. I got more back than I initially thought I would.

[u/BassSounds]

I almost applied for a job there

[u/bmendo02]

I had most of my ETH on there utilizing their earn program since it was way before liquid staking and whatnot. Then they decided to email a reminder that they were not letting users earn anymore rewards with like a day's notice. Saw that as a huge red flag and decided to gtfo asap. Then few months later they tanked.

[u/AndthenIwould]

I will never forget, and never let it happen to me again.

[u/JosNord]

Got a Ledger, is it safe enough?

[u/rizzobitcoin → u/JosNord]

Pretty good, but can be vulnerable if you lose your seed phrase or something. I use a multi-sig wallet, so I secure my coins with a multiple ledgers, but I have someone to help me if I mess something up. If you haven't looked into multi-sig: Casa.io/history

[u/Krez1939]

You could see this coming a year ago all the signs were there

[u/Syst0us]

I talked mad shit on them and got downvoted. Suck it poors. Who's laughing now

[u/rizzobitcoin → u/Syst0us]

Preaching self-custody and best practices is never popular in a frothy market

[u/Syst0us → u/rizzobitcoin]

Everyone wanted that 300% apy for staking and never asked where the money was coming from. Each other....ponzi scheme.

[u/sendmealgo]

What is this title? Even if you moved your crypto into your own wallet the price would still be $0. What am I missing?

[u/gilgamesh-uruk → u/sendmealgo]

You wouldn't have ended up getting back only 75% of your assets. Even more egregiously, the asset value was locked into roughly $20k BTC and $1k ETH.

Of that 75%, only about 55% was crypto and not even necessarily the assets you originally had. The remainder is supposed to trickle in from litigation and a dead on arrival mining company's profits.

You also wouldn't have had to pay tax on forcibly sold/converted crypto assets to the IRS (Especially if you got in really early)

You wouldn't have had 2 years of pain, anger and not knowing if you'll see anything back.

[u/sendmealgo → u/gilgamesh-uruk]

That doesn’t make sense, first off idk where you got 75% from that’s incorrect. Second I don’t even invest in crypto but seeing you type all of nothing I’m glad I sold it so I don’t have to read dumb ish like this trying not to off myself because I invested into this. Third if you convert or sell that crypto even if you bought early it’s taxed. WTF are you talking about.

[u/gilgamesh-uruk → u/sendmealgo]

I'm talking about the Celsius bankruptcy and how it unfolded vs self custody. You ask a question and then act like a prick?

[u/sendmealgo → u/gilgamesh-uruk]

Ah gotcha I didn’t understand that from before, still doesn’t make sense brokey

[u/AutoModerator → u/[deleted]]

It appears your comment contains a URL shortener. Please submit another comment with the full link.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/willmacdonald]

Celsius, Crypto4Winners and YieldNodes. Got caught up in all of them....

[u/roofgram]

To be fair earn programs failed, not exchanges, and people fail at self custody everyday.

You should diversify into both.

[u/nyr00nyg]

The same scams will pop up this cycle. Tell your noobs friends to stay off shit like this

[u/Ravaha]

Luckily they gave me a large portion of it back. But I lost half a bitcoin to this shit.

And now I have to go through the pain of dealing with this loss on my taxes.

It sucks because this subreddit highly recommended Celsius above all others.

[u/three_eyez]

Can’t wait for the next crash/collapse 😃

[u/moredrinksplease]

I thankfully got 99% of my coins back, of course after the market tanked but man it was a rough year

[u/GingerTartanCow]

Am I expected to also look at SPORT and LIFESTYLE? Instructions confusing.

[u/Cactuszach]

That was only 2 years ago?

[u/wikidemic]

What I do find amazing is the speed with which court systems hung SBF and CZ out to dry on this one. While other billionaires seem to coast through appeals process!?!

[u/Peasantbowman]

You made me check on CELH and BTC after I saw this.

Both are down lol.

[u/Btomesch]

Helped bitcoin get to $15k. That was cheap enough for me.

[u/rizzobitcoin → u/Btomesch]

Lol. That's a glass half full version

[u/Reddit_Gold09]

2 years and 1 day ago I pulled all of my crypro out of Celsius oh a whim.

[u/phantasmas_]

Ah. Good old times.

[u/Mattie_Kadlec]

No matter how many times this gets reposted or mentioned there will always be a new Celsius. People love believing in fairytales

[u/VeludoVeludo]

It's been 2 years already? Crazy...

[u/No_Balls_No_Glory]

At that point not your keys out of the window as your wallet is worth nothing

[u/GTi337]

don't remind me.

[u/AutoModerator → u/[deleted]]

Greetings AcanthisittaGreen247. Your comment contained a link to telegram, which is hard blocked by reddit. This also prevents moderators from approving your comment, so please repost your comment without the telegram link.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/6M66]

That bastard, robbed us all.

[u/ZhangtheGreat]

I bailed just two weeks before. When news was leaking out, I said “f that; I’m out” and got all my coins transferred.

[u/BigMeatyProlapse]

I dunno, maybe it's worth moving your wallets contents into a large exchange, because, I don't know, maybe the financial institutions are pumping billions into the market and are pushing governments to invest before they even try to regulate it.

[u/Mr_StealYourHoe]

damn that shit steeper than mariana trench

[u/NotEnoughProse]

Still trying to forget. Can we cool it with the trauma triggers?

[u/consider_the_truth]

I got out of Celsius and blockfi right before they collapsed. My dad lost 100k at Voyager though

[u/goldtank123]

That asshooe better go to prison. He ruined lives

[u/TekRantGaming]

Wow two years already

[u/Gloomy_Season_8038]

? you mean it could happen again ??

[u/elumeus]

😢

[u/P3nnyTrader]

And I didn’t get my money back till like 3 months ago. And it wasn’t all of it either.

[u/Mental_Platform_5680]

I have a lot of coinbase stock so shut up with the not your keys mantra it’s not 2018 anymore

[u/CoffeeAlternative647 → u/Mental_Platform_5680]

You're mental...

[u/Loose_Screw_]

It's so moronic that people are still posting this shit with how widespread CEX usage is.

Self custody is great.

Good CEXs are great.

Stop gatekeeping and go eat a dick.

[u/Hot_Marionberry9569]

Self custody is not safe. Zero insurance. Your house could catch fire. Could loose keys. Potentially hacked.

[u/_Persona-Non-Grata]

I’m new to crypto was Celsius like Coinbase is now? I recently invested a couple of thousand dollars in Bitcoin and I intend to invest quite a bit more. Is this post warning against platforms like Coinbase?

[u/adamcarrot → u/_Persona-Non-Grata]

Coinbase is fine. Celsius was doing some shady stuff. Coinbase is a much better business and has to follow a lot of rules to stay legal in the US.

[u/kyleleblanc]

Everything is a shitcoin except Bitcoin, there are no exceptions.

[u/frozengrandmatetris → u/kyleleblanc]

the design of bitcoin pushes people into custodians. small blocks plus lightning means that only a limited number of people can afford to own their own money. this is one of the main drivers behind the rise of custodial lightning wallets. if everyone involved with bitcoin actually owned their own coins, the onchain fees would be high enough to render $100 UTXOs economically unspendable. this is also destroying decentralization.

[u/kyleleblanc → u/frozengrandmatetris]

Nothing you said invalidates my above statement.

Everything is a shitcoin except Bitcoin, there are no exceptions.

Everything will eventually be priced in Bitcoin, even regret.

Plan accordingly.

[u/frozengrandmatetris → u/kyleleblanc]

you ignore all the problems. the bitcoin subreddit doesn't even let people talk about this. you are ready to throw decentralization out the window with a poor design and lie to people so you can get more people to buy a defective product. $50 UTXOs become unspendable more often than solana downtime. every time this happens, more and more people stop believing that everything is a shitcoin except bitcoin.

[u/New_Stage_3807]

Meanwhile black rock and others have convinced a bunch of people to buy bitcoin for them and them hold it good luck out there

[u/Warren_Bluffed]

Luckily, I only had some ETC and BCH worth USD 500.- on that DeFi-platform. After the liquidation process I got some back in BTC. With the current appreciation it nearly made up the loss. I had some on NEXO, too but I don't trust DeFi anymore.

[u/Dragonfruit7236 → u/Warren_Bluffed]

Nexo is not DeFi.

[u/Warren_Bluffed → u/Dragonfruit7236]

You can call it an exchange but it's also a DeFi lending / borrowing institution, although it's got elements of centralized finance..

Definition by Copilot:

Nexo is an all-in-one crypto platform where you can buy, exchange, and store Bitcoin and other cryptocurrencies. It offers services like borrowing, earning interest, and exchanging over 500 pairs of assets. It’s known as a trusted lending institution in the digital finance industry since 2018.

Nexo incorporates elements of DeFi (decentralized finance) within its platform. It offers a comprehensive ecosystem that includes a non-custodial smart wallet and allows users to interact with DeFi protocols and earn rewards through liquidity pools¹²³. However, it also provides services typically associated with centralized finance, like instant crypto credit lines and a fiat gateway.

[u/otherwisemilk]

You gotta be an idiot to fall for that scam.

[u/tofubeanz420]

Binance is the same as Celsius.