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Celsius To File For Bankruptcy (cnbc.com) 49

Posted by BeauHD from the latest-developments dept.
According to CNBC, embattled crypto company Celsius is in the process of filing for Chapter 11 bankruptcy. From the report: The company's lawyers were notifying individual U.S. state regulators as of Wednesday evening, according to the source, who asked not to be named because the proceedings were private. Celsius plans to file the paperwork "imminently," the person said. The Hoboken, New Jersey-based company made headlines a month ago after freezing customer accounts, blaming "extreme market conditions."

The company was one of the largest players in the crypto lending space with more than $8 billion in loans to clients, and almost $12 billion in assets under management as of May. Celsius said it had 1.7 million customers as of June and was competing with its interest-bearing accounts and yields as high as 17%. The firm would lend customers' crypto out to counterparties willing to pay a sky-high interest rate to borrow it. Celsius would then split some of that revenue with users. But the structure came crashing down amid a liquidity crunch in the industry. "Unfortunately, this was expected. It was anticipated. It does not, however, stop our investigations. We will continue investigating the company and working to protect its clients, even through its insolvency," Joseph Rotunda, director of enforcement at the Texas State Securities Board, said of the Celsius bankruptcy filing.
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Celsius To File For Bankruptcy

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  • Is this an international story? (Score:5, Funny)

    by The New Guy 2.0 ( 3497907 ) on Wednesday July 13, 2022 @07:28PM (#62700908)

    I thought Fahrenheit coins would be more popular in the USA...

  • Comment removed (Score:3)

    by account_deleted ( 4530225 ) on Wednesday July 13, 2022 @07:37PM (#62700930)
    Comment removed based on user account deletion

    • Re: (Score:3)

      by AuMatar ( 183847 )

      I'd recommend going with Kelvin instead. It may not be the most user friendly system, but at least you know when its hit absolute zero.

      • Re: (Score:2)

        by rossdee ( 243626 )

        We should be using an absolute scale for thermodynamic and physics.

        I don't know anyone that uses Rankine, Kelvin seems the best choice.
        Especially iuf you use other metric units like metres and Kg

        • We should be using an absolute scale for thermodynamic and physics.

          I've got news for you: they do. The T in PV=nRT ain't in Celsius, and it's definitely not Fahrenheit.

        • Road signs giving distances in Planck lengths might get a tad bit unwieldy...

          • Fractions of the distance travelled by light in a vacuum in one second would surely be preferable?

            • C'mon, nobody would be stupid enough to use that as a meaningful unit.

            • Re: (Score:2)

              by tlhIngan ( 30335 )

              Fractions of the distance travelled by light in a vacuum in one second would surely be preferable?

              Why not? Most of the world uses lengths defined that way.

              1 metre is defined precisely as the distance light travels in 1/299792458th of a second in a vacuum.

              Of course, using Planck lengths is nice in that you never have to deal with a decimal fraction at all - everything is an integer multiple. So if you hate fractions or decimals, Planck lengths avoid that.

              And Kelvins are for people who don't ever want to deal

              • Re: (Score:2)

                by q_e_t ( 5104099 )

                Fractions of the distance travelled by light in a vacuum in one second would surely be preferable?

                Why not? Most of the world uses lengths defined that way.

                I'm glad someone got the reference :).

          • But how many parsecs was the Kessel run?

      • It may not be the most user friendly system, but at least you know when its hit absolute zero.

        Does it, though? :)

    • but Celsius has always been far more intuitive to me

      Okay, I'll bite - what, exactly is "intuitive" about the Celsius scale? I grew up in Germany & the US, so I've used both, and have no real preference as to which one is used for any particular task, but I've never seen a case where I'd describe either as "intuitive"...

      • It's quite intuitive across the board, specially when used with other metric units, as it is derived from Kelvin (which is, of course, metric).

        Off the bat, water freezes at 0C and boils at 100C, instead of bald eagles per football field or whatever figures are in Fahrenheit. It meshes perfectly with other metric units, which is why for example you can tell than it takes exactly one calorie to heat 1ml of water by 1C.

        The second you switch to imperial, you need constants to convert units. It's a pain in the a

        • Fahrenheit is far better it's a 180 degrees between freezing water and boiling water... a half circle... pretty intuitive

        • Re: (Score:2)

          by jeremyp ( 130771 )

          That's because that is the definition of a calorie. By the way, nobody uses that unit. Scientists use the joule and, when talking about food energy, everybody uses the large calorie, which is the energy required to raise one kilogram of water by 1 C/K.

          It takes 4184 joules to raise 1 kg of water by 1 C/K.

      • Comment removed based on user account deletion

  • How many? (Score:4)

    by LatencyKills ( 1213908 ) on Wednesday July 13, 2022 @07:44PM (#62700948)

    Seriously, anyone have any idea how many of these scam crypto houses exist? We've been getting stories of one or another folding or freezing or absconding every few days for months now. How many more could be left? Just how many suckers were there?

    • All of them? It's harder to find one that isn't an outright scam.

    • Re:How many? (Score:5, Informative)

      by Lisandro ( 799651 ) on Thursday July 14, 2022 @05:53AM (#62701748)

      Here's a good tracker. [web3isgoinggreat.com]

    • Re: (Score:1)

      by mjwx ( 966435 )

      Seriously, anyone have any idea how many of these scam crypto houses exist? We've been getting stories of one or another folding or freezing or absconding every few days for months now. How many more could be left? Just how many suckers were there?

      Pretty much all of them.

      Crypto was a scam from the word go. It just got popular recently.

      No doubt there are ones failing every day we don't even hear of and as for how many suckers there were, you know the old saying about one being born every minute. We might need to update that to every second now.

    • Were Lehman Brothers also a scam? When a bank goes bust nobody says it was a scam. Celsius was a badly designed business model, that's all. If it was a scam, we wouldn't be talking about filling for bankruptcy.

      • Re: (Score:1)

        by nrlz ( 6315852 )
        Maybe Celsius was a viable business model at the start. But once they discovered the profits they earned from investing their customers money no longer offered enough to cover the interest they were paying to their customers, they should have reduced the amount of interest they were offering. Instead they chose to keep it high to maintain customer confidence and prevent a mass exodus. It might not have been a scam at the get go, but became one later on.

  • Fahrenheit laughs because if they had used Fahrenheit it would have been more!

  • Shocked I am! Shocked! Absolutely shocked I tell you!

    (We learned nothing from the .com bubble)

    • There is a crucial difference between this and the dot com bubble.

      Remember the dot com business plan:

      1. Do something.
      2. ???
      3. Profit!

      In many cases, the usefulness of point 1 was at least somewhat clear. For example, many companies were essentially "write open source software, sell consulting". Dot-com f'd companies tended to fail on point 2.

      The problem with crypto companies (leaving aside actual deliberate scams/rug pulls) is that that they tend to fail on point 1.

      • To me not much difference between the 2. The dot com was start a company with "web" in it and go public for alot of money. The latest craze is stick the word "blockchain" in your marketing or better yet in your company name and go public for alot of money. Wasn't there some public company that added "blockchain" in their name and their stock price went up like tenfold with absolutely no other changes?

        • I believe it was a company that sold iced tea.

        • To me not much difference between the 2. The dot com was start a company with "web" in it and go public for alot of money. The latest craze is stick the word "blockchain" in your marketing or better yet in your company name and go public for alot of money.

          The dot-com companies tended to provide some sort of product or service.

          Pets.com sold pet supplies.
          Geocities provided entry level web hosting.
          Broadcast.com provided an audio streaming platform for radio stations and independent artists.
          Excite provided email service and a search engine, as did Infoseek and AltaVista.
          Webvan.com did grocery delivery.
          Boo.com sold clothing.
          Flooz.com tried to solve the problem of people being wary of using credit cards online in the mid-90's, and tried to provide a currency that

      • The difference is now just changing

        1. Do something

        to

        1. Have a computer do something

    • Some of us did.

      Some insisted in checking if the stove is still hot.

    • Will not be surprised if alot of those involved in Crypto were not not around during the .com bubble and so think it's some ancient history. Just like the great depression.

    • The losers in the Crypto crash learned nothing from the dot com crash. The winners, however, appear to have learned their lessons very well.

  • The unicorn without any collateral value (Score:3)

    by thesjaakspoiler ( 4782965 ) on Wednesday July 13, 2022 @08:12PM (#62700990)

    You might as well be managing someone else's Pokemon cards and pretend your company is worth billions.

  • F C! (Score:2)

    by dohzer ( 867770 )

    If Americans use fahrenheit, then why is there an article about Celcius every day?

  • I didn't know Celsius was still alive!
  • A scamming operation being revealed for what it is, and people therefore dropping it like the piece of shit it's always been.

  • ...than fiat currency.

    And while you're losing everything as crypto crashes, want to buy a bridge?

  • If you fraudulently manage other people's fraudulent cryptocurrency deposits, do the frauds cancel each other out?

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