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Empty Accounts Discovered As Celsius Allows Crypto Withdrawals For Eligible Users

In a recent announcement, bankrupt crypto lender Celsius has initiated additional withdrawals for certain eligible custody users. However, it’s important to note that only specific custody assets are currently available for withdrawal, while other cryptocurrencies such as Bitcoin (BTC) remain inaccessible. 

Starting November 29th, two groups, namely Class 6A General Custody Claims and Class 6B withdrawable custody claims, are eligible for withdrawals. Users within these groups have until February 28th to make their withdrawals. 

Qualifying users can withdraw 72.5% of their crypto, minus transaction fees, provided they did not participate in a previous custody settlement. 

Withdrawal Woes For Celsius Users

In the November 29 announcement, Celsius urged users to withdraw these assets from the Celsius app immediately and to keep personal records of relevant information, as the app will only be accessible for a limited time. 

However, despite the withdrawal option, some Celsius users have experienced difficulties, according to reports on the X platform. This development comes as some 58,300 users hold approximately $210 million worth of assets that have been deemed “custodial assets” by the court.

According to user responses to the Celsius announcement, there have been reports of login failures on the platform. Users claim to be experiencing errors even after attempting to reinstall the Celsius app. 

Additionally, some users have expressed concern that their Earn accounts are empty, further exacerbating the issues faced by former users of the crypto lending platform. One user specifically stated: 

While my frozen portfolio balance is visible, my custody balance shows 0.

Transition To ‘Creditor-Owned’ Bitcoin Mining Company

As reported by our sister website, Bitcoinist Celsius recently obtained approval from the bankruptcy court for its proposal to transition into a creditor-owned Bitcoin mining company. 

This plan involves repaying customers through a combination of crypto assets and stock in the newly established Bitcoin mining firm, which will be publicly listed.

The distribution of assets is expected to commence in early 2024, pending endorsement from the US Securities and Exchange Commission (SEC). However, Celsius acknowledges the possibility of liquidation if the crypto-mining proposal fails to materialize.

Celsius and its founder and CEO, Alex Mashinsky, have faced legal action from various entities, including the SEC, Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC), for alleged misleading practices. 

Celsius promptly settled with the FTC, agreeing to pay $4.7 billion once the bankruptcy proceedings concluded. Mashinsky has been charged with fraud; his criminal trial is scheduled this year. 

Overall, the resolution of the reported issues faced by Celsius users remains uncertain, including the login difficulties and accounts displaying zero balances. 

It is yet to be determined whether these occurrences are temporary or persistent and how the platform intends to address them. The future actions and measures Celsius took to rectify these concerns are still to be clarified.

Celsius

The lender’s native token, CEL, is trading at $0.2533, up 5% in the past 24 hours. However, it is important to note that the token has yet to recover from its 2022 decline and remains down more than 50% year-to-date.

Featured image from Shutterstock, chart from TradingView.com

Posted on

Empty Accounts Discovered As Celsius Allows Crypto Withdrawals For Eligible Users

In a recent announcement, bankrupt crypto lender Celsius has initiated additional withdrawals for certain eligible custody users. However, it’s important to note that only specific custody assets are currently available for withdrawal, while other cryptocurrencies such as Bitcoin (BTC) remain inaccessible. 

Starting November 29th, two groups, namely Class 6A General Custody Claims and Class 6B withdrawable custody claims, are eligible for withdrawals. Users within these groups have until February 28th to make their withdrawals. 

Qualifying users can withdraw 72.5% of their crypto, minus transaction fees, provided they did not participate in a previous custody settlement. 

Withdrawal Woes For Celsius Users

In the November 29 announcement, Celsius urged users to withdraw these assets from the Celsius app immediately and to keep personal records of relevant information, as the app will only be accessible for a limited time. 

However, despite the withdrawal option, some Celsius users have experienced difficulties, according to reports on the X platform. This development comes as some 58,300 users hold approximately $210 million worth of assets that have been deemed “custodial assets” by the court.

According to user responses to the Celsius announcement, there have been reports of login failures on the platform. Users claim to be experiencing errors even after attempting to reinstall the Celsius app. 

Additionally, some users have expressed concern that their Earn accounts are empty, further exacerbating the issues faced by former users of the crypto lending platform. One user specifically stated: 

While my frozen portfolio balance is visible, my custody balance shows 0.

Transition To ‘Creditor-Owned’ Bitcoin Mining Company

As reported by our sister website, Bitcoinist Celsius recently obtained approval from the bankruptcy court for its proposal to transition into a creditor-owned Bitcoin mining company. 

This plan involves repaying customers through a combination of crypto assets and stock in the newly established Bitcoin mining firm, which will be publicly listed.

The distribution of assets is expected to commence in early 2024, pending endorsement from the US Securities and Exchange Commission (SEC). However, Celsius acknowledges the possibility of liquidation if the crypto-mining proposal fails to materialize.

Celsius and its founder and CEO, Alex Mashinsky, have faced legal action from various entities, including the SEC, Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC), for alleged misleading practices. 

Celsius promptly settled with the FTC, agreeing to pay $4.7 billion once the bankruptcy proceedings concluded. Mashinsky has been charged with fraud; his criminal trial is scheduled this year. 

Overall, the resolution of the reported issues faced by Celsius users remains uncertain, including the login difficulties and accounts displaying zero balances. 

It is yet to be determined whether these occurrences are temporary or persistent and how the platform intends to address them. The future actions and measures Celsius took to rectify these concerns are still to be clarified.

Celsius

The lender’s native token, CEL, is trading at $0.2533, up 5% in the past 24 hours. However, it is important to note that the token has yet to recover from its 2022 decline and remains down more than 50% year-to-date.

Featured image from Shutterstock, chart from TradingView.com

Posted on

Empty Accounts Discovered As Celsius Allows Crypto Withdrawals For Eligible Users

In a recent announcement, bankrupt crypto lender Celsius has initiated additional withdrawals for certain eligible custody users. However, it’s important to note that only specific custody assets are currently available for withdrawal, while other cryptocurrencies such as Bitcoin (BTC) remain inaccessible. 

Starting November 29th, two groups, namely Class 6A General Custody Claims and Class 6B withdrawable custody claims, are eligible for withdrawals. Users within these groups have until February 28th to make their withdrawals. 

Qualifying users can withdraw 72.5% of their crypto, minus transaction fees, provided they did not participate in a previous custody settlement. 

Withdrawal Woes For Celsius Users

In the November 29 announcement, Celsius urged users to withdraw these assets from the Celsius app immediately and to keep personal records of relevant information, as the app will only be accessible for a limited time. 

However, despite the withdrawal option, some Celsius users have experienced difficulties, according to reports on the X platform. This development comes as some 58,300 users hold approximately $210 million worth of assets that have been deemed “custodial assets” by the court.

According to user responses to the Celsius announcement, there have been reports of login failures on the platform. Users claim to be experiencing errors even after attempting to reinstall the Celsius app. 

Additionally, some users have expressed concern that their Earn accounts are empty, further exacerbating the issues faced by former users of the crypto lending platform. One user specifically stated: 

While my frozen portfolio balance is visible, my custody balance shows 0.

Transition To ‘Creditor-Owned’ Bitcoin Mining Company

As reported by our sister website, Bitcoinist Celsius recently obtained approval from the bankruptcy court for its proposal to transition into a creditor-owned Bitcoin mining company. 

This plan involves repaying customers through a combination of crypto assets and stock in the newly established Bitcoin mining firm, which will be publicly listed.

The distribution of assets is expected to commence in early 2024, pending endorsement from the US Securities and Exchange Commission (SEC). However, Celsius acknowledges the possibility of liquidation if the crypto-mining proposal fails to materialize.

Celsius and its founder and CEO, Alex Mashinsky, have faced legal action from various entities, including the SEC, Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC), for alleged misleading practices. 

Celsius promptly settled with the FTC, agreeing to pay $4.7 billion once the bankruptcy proceedings concluded. Mashinsky has been charged with fraud; his criminal trial is scheduled this year. 

Overall, the resolution of the reported issues faced by Celsius users remains uncertain, including the login difficulties and accounts displaying zero balances. 

It is yet to be determined whether these occurrences are temporary or persistent and how the platform intends to address them. The future actions and measures Celsius took to rectify these concerns are still to be clarified.

Celsius

The lender’s native token, CEL, is trading at $0.2533, up 5% in the past 24 hours. However, it is important to note that the token has yet to recover from its 2022 decline and remains down more than 50% year-to-date.

Featured image from Shutterstock, chart from TradingView.com

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Did The Bahamas’ Securities Commission Take Control of FTX’s Assets? They Did

The Bahamas struck first and struck hard. Yesterday, there were rumors going around that their government was pressuring Sam Bankman-Fried to give them control of FTX’s assets. What sounded like a bizarre story, today is more than confirmed. The Securities Commission of The Bahamas released an official document announcing the takeover. Of course, they did it to protect the interests of FTX’s clients. It was urgent.

The document began:

“On 12 November 2022, the Securities Commission of The Bahamas (“the Commission”), in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (“FDM”) to a digital wallet controlled by the Commission, for safekeeping. Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.” 

To accomplish that, The Bahamas completely ignored the bankruptcy procedures opened in the United States. “It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings,” the Securities Commission of The Bahamas said bluntly. And then, they took control of the situation. “Over the coming days and weeks, the Commission will engage with other regulators and authorities, in multiple jurisdictions, to address matters affecting the creditors, clients and stakeholders.”

In case anyone doubts it, The Bahamas clarifies that “The Commission is responsible for the administration of the Digital Assets and Registered Exchanges Act.”

FTTUSD price chart - TradingView

FTT price chart for 11/18/2022 on FTX | Source: FTT/USD on TradingView.com

FTX’s New Management Warned About The Bahamas Intentions

Yesterday, The Wall Street Journal reported on FTX’s new management’s concerns with The Bahamas government’s intentions. 

“Lawyers for FTX’s new management also said in court papers that the government of the Bahamas is disrupting the exchange’s chapter 11 case, filed last week in the U.S. Bankruptcy Court in Delaware. The papers escalate a budding dispute for control of FTX’s insolvency proceedings between its U.S. management and securities regulators in the Bahamas.”

At the time, who would’ve thought that The Bahamas was going to move that fast? Maybe we should have, because on that same article the WSJ informed us that “The Securities Commission tapped lawyer Brian Simms KC to oversee the liquidation of FTX”. Plus, “a Bahamian court approved Mr. Simms’s appointment on Thursday”. And on Tuesday, Simms “filed a chapter 15 petition in U.S.” What is a chapter 15, and what does it imply? Back to the article:

“The chapter 15 filing, if successful, could move at least a portion of FTX’s bankruptcy proceedings to courts in the Bahamas. Mr. Simms said Tuesday in a sworn declaration the Supreme Court of the Commonwealth of the Bahamas has sole jurisdiction over FTX Digital and other entities operated from the company’s “substantial office complex” in Nassau, Bahamas.”

Now that the government of The Bahamas apparently took possession of the assets, the U.S doesn’t seem to have a choice but to work with them.

Conspiracy Theory Time

Is Sam Bankman-Fried working with the government of The Bahamas on this? Among the rumors that circulated yesterday, there was one that said that he was being forced to “hack” into FTX and surrender custody of the assets. Plus, Bankman-Fried recently said that filling for Chapter 11 in the US was his biggest mistake so far. Could he be trying to revert the operation with the help of the government of The Bahamas? Something to ponder.

Featured Image by Rinald Rolle on Unsplash | Charts by TradingView

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Bear Market Who? Data Shows High Conviction In BTC And ETH

This is the weirdest bear market to date. It seems like most people were prepared for it, even though the death spirals and Chapter 11 bankruptcies that started it came out of nowhere. In any case, every coin is in the red. The market should be in a state of fear, uncertainty, and doubt. That is certainly not the case for the two leading cryptocurrencies. The circumstances might be different for each one, but both markets show signs of unwavering conviction. 

Long-time holders of bitcoin and ethereum seem to be laughing in the bear market ’s face. In the latest edition of The Wolf Den, the author uses Glassnode and Intotheblock’s data to show us how this is true. 

The Bear Market Vs. Bitcoin

“On-chain evidence from Glassnode suggests that there has been no meaningful reduction in the conviction of long term believers,” the newsletter states. To prove this, The Wolf Den looks at the “Dormancy Metric.” The number that “tracks the average age of every Bitcoin that moves, determined by when it was mined. One of the ways to gauge the sentiment of long-term holders is to asses the average age of coins moving around the market.”

As attentive readers might suspect, the coins that are “moving around the market” are extremely young. In fact, their age “is at multi-year lows. The dormancy value is very low.” This is consistent with previous bear markets, in which dormancy values tend to be low. The newsletter quotes analysis from Glassnode:

“The decline in lifespan metrics actually bodes well for the longer-term, as it indicates old coins are stationary, and declining prices have little psychological impact on this cohort’s conviction.”

So, if we focus on the big picture, everything looks like it’s supposed to. A healthy habit during bear markets.

BTC price chart for 09/02/2022 on Cexio | Source: BTC/USD on TradingView.com
The Ethereum Merge Is Upon Us

For this section, The Wolf Den used data from IntoTheBlock. Before getting into it, the author clarified the sequence of events that compose the mythical “merge”. First of all, on September 6th, “the Bellatrix upgrade happens on the Beacon chain”. Then, between September 10th and 20th, “the official transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) will occur”. The Ethereum Foundation estimates that the merge will happen on September 15th. 

To evaluate the Ethereum network’s state during this bear market, The Wolf Den looked into “netflows onto centralized exchanges”. Overall, more ETH is leaving the exchanges than entering, which is bullish. It tends to mean people are not looking to sell their assets. However, with the merge looming and the bear market among us, it could have other meanings. 

On the one hand, people might be “bullish on the merge as users believe that the merge will happen successfully and are loading up on ETH for potential price action.” On the other, they might be anticipating the possible ETH Proof-Of-Work hard fork. If that happens, “all ETH being held in wallets can claim ETHW at a 1:1 ratio, traders might be preparing themselves to claim the most ETHW possible.”

Another curiosity about the bear market’s current state is this. Lately “the average inflow transaction size is generally larger than its outflow counterpart”. According to The Wolf Den, that’s not a problem because “netflows onto centralized exchanges” are low. And that’s a stronger indicator. However, those large inflow transactions might suggest something that makes sense. “Larger traders and institutional investors are more skeptical about the success of the merge”.

In any case, long-time bitcoin and ethereum holders show unwavering conviction despite the bear market’s conditions. For different reasons altogether.

Featured Image by congerdesign from Pixabay | Charts by TradingView