Megathread: Celsius halts withdrawals

Celsius has halted withdrawals.

Notice from Celsius: https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6

Twitter: https://twitter.com/CelsiusNetwork/status/1536169010877739009

Article on Bloomberg: https://www.bloomberg.com/news/articles/2022-06-13/crypto-lender-celsius-freezes-withdrawals-fueling-market-rout

Article on FT: https://www.ft.com/content/61334d19-fb25-4492-83d0-78c3cfec4df8

Other crypto lending firms like Nexo have offered to bail Celsius out: https://twitter.com/Nexo/status/1536217856815374337

Use this Megathread for discussions on this topic.

Updates: Nexo has announced a formal letter of intent.

https://www.coindesk.com/business/2022/06/13/nexo-proposes-celsius-buyout-as-rival-halts-withdrawals/

Document: https://drive.google.com/file/d/1PlxlCKn2Ro0PDAco-Fjlsi0hWU8gwgBE/view

Threads on the situation:

  1. https://twitter.com/wassielawyer/status/1536192639112183808

Further updates:

A user on Celsius sub-reddit called Celsius support and this is the update: https://np.reddit.com/r/CelsiusNetwork/comments/vbi9md/my_call_with_support/

Megathread: Celsius halts withdrawals

48 thoughts on “Megathread: Celsius halts withdrawals”

  1. The daily discussion thread can be found here for the time being:

    https://reddit.com/r/CryptoCurrency/comments/vayzek/daily_general_discussion_june_13_2022_gmt0/

  2. A lot of crypto bros didn’t want regulation. This is what it looks like.

    Warren constantly got hate for her position, but she called it from the beginning. People are suckers and need to be protected. The problem is they have no appreciation for how protected they already are.

  3. Saylor defended and promoted Celsius as future in interviews.

    https://youtu.be/LdwSxwl9BQk

  4. Lex Moskovski on twitter:

    >Celsius has posted another 1501 BTC as collateral and pushed its liquidation price down to $17,211.

    https://twitter.com/mskvsk/status/1536521491763765248

    Seems like a good bet that we are heading down to bitcoin at $17k.

  5. If you don’t own the keys to your crypto these warnings signs were meant to wake you the hell up.

    Get your tokens off of exchanges. Stop chasing earn rates/yield whatever the hell and get your tokens into a hardware wallet. Get them off of these platforms. No… Plutus/Celsius/Anchor/USDD aren’t “different”. Get ownership of your shit now, or be the next fool.

  6. I took a 25%LVR loan against my Bitcoin. I got margin called at 65%LVR. It’s currently at 66%. I’m wondering if you get margin called and the price goes back above your margin call are you still required to bring your LVR back below the 25% Celsius requested at the time of the margin call as they give you 24 hours to resolve the margin call?

    If so the amount I would have to supply would be more than my current loan in BTC is worth due to borrowing when BTC was 60k USD.

  7. Celsius likely halted withdrawals temporarily because they didn’t have enough liquid assets in reserve to meet a sudden spike in demand for withdrawals. Celsius is a lending program, so the vast majority of our money is being lent out in order to earn interest and is thus temporarily illiquid. They keep a percentage in reserves to handle withdrawal demands, but if the majority of its customers suddenly decide to remove their money at the same time it’s not possible to honor those withdrawal requests since the majority of those customer’s funds are being lent out, which was the whole point of putting funds on Celsius in the first place. Once more funds being lent out are returned with interest, they will be able to allow more withdrawals. However, they’ll likely have to put restrictions on those withdrawals, because allowing their customers to completely remove all liquidity from the business would truly destroy the business. People need to calm down. Our funds likely aren’t gone, just temporarily illiquid. That’s why we put our funds on Celsius in the first place, isn’t it? To lend them out and earn interest.

  8. The sale button on exchanges should be disabled.

    You must maintain your composure.

    Yes, everything must stay in place.

  9. The runny fat can’t overflow the steal.

    Is the number insurance better than the hope?

  10. The stereotyped force can’t spill the support.

    It was then the fierce reveal met the runny cry.

  11. If only stablecoins could somehow be insured some way…even 5% apy would be awesome.

    Heck i think after this luna and celsius ponzis, the only way any CEX would be able to operate and grow is with insured cryptos. Meanwhile getting off-exchange wallets for cryptos still fcking complicated and too easy to make an error and lose entire life saving, or misclicked some phishing link or get hacked…

    Crypto is still in such wild stage hard to believe it grew that fast past 2 years. Past 2 years was a big fcking surprise, this collapse is not.

  12. Did the distant bite really sip the dance?

    What if the affectionate female ate the inevitable?

  13. If Celsius is insolvent, which they are (you don’t stop withdrawals if you have the money) then Tether is also insolvent.

    Look into their relationship. It’s obvious.

    They’re both fucked.

  14. This is a brilliant thread on the Celsius situation, the best summary I’ve read on it. Very worrying for those affected.

  15. Celsius put up more collateral and their new liquidation is at ~16.8k BTC, they might be short-term outta the woods but damn their future looks bleak 😅

  16. ⚠️ New development: Celsius disables loan interest payment currencies except BTC, ETH & USD stablecoins

    Borrowers on Celsius can now only pay interest with BTC, ETH or USD stablecoins.

    Interest payments with other cryptocurrencies, including native CEL, seem to be disabled without any announcement.

    Automatic interest payments with any other cryptocurrencies are now set to manual and users are called to use BTC, ETH or USD – or deposit if they don’t have enough balance, which is likely key here.

    This is just squeezing users further and silently: there has been no announcement about this – or any discussion so far – at all.

    I have tried tweeting this, posting as a post on r/cc (removed – “there’s a megathread alreadyy”) but nobody seems to care about this development, so posting in a sea of 2K comments will surely do the trick.

    Screenshot on Twitter – can’t be bothered with a 5th upload. https://twitter.com/d13_co/status/1536610409922314240

  17. For those believing banks are safe, they technically are exactly the same as Celsius, an institution that makes money by lending. Sure the regulations are a bit tighter but if a bank fails. They can go running to the FED to bail them out and of course the taxpayer will foot the bill.

  18. Came across this when reading through some of the replies to the Celsius announcement. It’s so sad to see something like this, and then to top it all off there’s a scamming fuck claiming to be Celsius customer support trying to scam him.

    https://twitter.com/MatthewPretor13/status/1536175613425467393?t=GOwTJj0IznYU9O8zT6M0xA&s=19

  19. So what are the actual chances of us degenerates being able to withdraw from Celsius at a later point?

    0%? 1% already sounds a bit too optimistic to me.

  20. https://np.reddit.com/r/CelsiusNetwork/comments/vbyzc5/despite_all_the_fud_and_recent_events_i_just/

    Either he’s larping or some mad motherfucker bought a 500k bag of CEL 3 hours ago 💀💀💀

  21. Possible solution to allow withdrawals without bank run, slightly unethical, but why not temporarily charge a x% withdrawal fee, and reduce it slowly overtime to meet supply/demand?

    For the people super scared/in need of the money, they can take a percent loss while not ensuring not everyone withdraws. Say 10% withdrawal fee first month, followed by 5% the next etc

  22. A german bank also now is in deep trouble, their clients who bought crypto etfs cant withdraw and might lose their money cause the bank invested through celsius. after all this, crypto will be regulated soooo heavy….

  23. Caisse de Depot et Placements du Québec (CDPQ), a financial institution of Québec gouvernement had 150 milions in Celsius and became minor partner in October. That is really hard to explain since the institution is managing the public pension funds. Very awkward moment for them.

    Edit: 150 milions, not 15 milions.

  24. I had a bad feeling about them when they started limiting to accredited only good luck to anyone with crypto stuck there like me!

  25. Alameda has sent $108 Million of USDT to FTX in the last 8 hours but it seems there’s no hope until Celsius liquidated.

  26. It’s crazy cause I planned to put some of my stuff on there a few months ago but felt weird about it. Then they stopped serving U.S. customers so that was the cherry on top. Thanks Celsius?

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