Angry clients of crypto firm Celsius flood Court with letters
Angry clients of Celsius Network, which has recently filed for Chapter 11 protection, have flooded the New York Southern Bankruptcy Court with letters.
Most of the letters voice their discontent with the actions of Celsius’ management and many of the letters contain requests for freezing the management’s access to funds. Clients expose the misleading nature of Celsius claims shortly before the company filed for bankruptcy.
The bulk of the letters have been filed with the Court over the past couple of days, with Judge Martin Glenn bombarded with the personal stories of money lost.
Here are several examples:
“Dear Honorable Judge Martin Glenn,
My name is A.B. (name edited due to privacy concerns – ED.) and 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. First, I would like to thank you for your service, especially the attention you have now focused on the Celsius bankruptcy case. I am writing this letter because I do not know who else to write to and it is my upmost desire that the voices of small investors are heard. 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”.
“Even after the bear market commenced in the crypto world, I stayed because Alex reassured us that we were safe. I selfishly want to say that small-time investors like myself should get a priority in getting our funds back, but I know things are more complicated than that. My biggest hope is that Alex does not simply walk away free from this with millions of dollars of profit from selling his CEL tokens, while I walk away with $15k of my savings lost along with my dignity and trust in our legal system”.
Another of the letters says:
“I wholly disagree with the characterization by Celsius that “how we got here today” is chiefly a result of the macro environment and bad public sentiment. It has been revealed in the media1 that Celsius was reckless, negligent, and misled its customers.
Overall I am concerned that the Chapter 11 process may offer some protection to Celsius’ leadership for actions for which I believe they ought to be held accountable, and/or preserve insider interests at the expense of retail creditors like myself”.
One more excerpt from another letter can be read below:
“Dear Justice Glenn, I am reaching out to you as an affected and self-represented individual in this ongoing bankruptcy proceeding.
At the outset, I want to bring to your kind attention the reputation of the people behind the company Celsius viz. Mr Alex Mashinsky, Mr. Nuke Goldstein etc. These people have been misleading customers for a long time and have profited by defrauding retail investors. Just a few days before locking withdrawals, Celsius published an article “Damn The Torpedos” suggesting that everything was fine over at Celsius and customers had nothing to worry about.
Just days after publishing this, they locked down withdrawals.
The nature of this scam is such that majority of the people trapped in it are retail investors, mom and pop investors who have saved up their funds and deposited it into Celsius for extra interest income, during a global period of low/almost zero interest rates. Celsius operating under Mr Mashinsky have exploited these people and led them into a trap from which it is hard for many to even believe there may be a future for them.
Considering these dire circumstances, and to improve the morale of the unsecured creditors trapped in the present situation, I hereby make a humble request for granting the requests sought herein including stopping any payments / salaries / executive compensations paid out to the erstwhile employees and executives of Celsius and Mr. Mashinsky”.
It is not clear whether the Judge will take all those letters into account when issuing rulings in this case. The lawsuit continues.