The downfall of Celsius Network

Big reason crypto firms collapse

Dear Reader, "Crypto market turmoil highlights risks of leverage in trading." The above is the headline of an article we wrote back on August 30, 2022. Fast forward almost a year later. Those words ring true as Celsius Network filed for bankruptcy on July 13, 2022.  One of the main reasons for the firm's downfall is leveraged trading.  At its peak, Celsius grew to more than 1.7 million customers.  It had $25 billion in assets under management.  During the recent crypto market downturn… Celsius collapsed as stablecoins depegged from the U.S. dollar.   The operation began falling apart and billions of dollars were lost. According to the FTC complaint, Celsius misappropriated $4 billion worth of deposits. Consumer deposits were used to fund the firm's operations, "pay rewards to other customers", borrow and make leveraged investments.  Basically, the executives running the show flat out… LIED! Will depositors who lost money ever see it again? We don't know. In any case, it's a good idea (since the crypto market is still in the early stages) for investors to be careful where they put their money.  Cointelegraph Markets Pro has created a platform to find solid investment opportunities.  Those opportunities can be vetted before an investment is made.  Regards, Russell DeCorte Director Markets Pro © 2023 COINTELEGRAPH MARKETS PRO COINFIDENTIAL. Copyright © 2023 Cointelegraph Markets Pro, All rights reserved. You are receiving this email because you opted in at our website. Our mailing address is: Cointelegraph Markets Pro 21 W 46th St New York, NY 10036-4119 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.