{"id":20750,"date":"2023-09-30T12:24:50","date_gmt":"2023-09-30T16:24:50","guid":{"rendered":"https:\/\/coincentral.com\/?p=20750"},"modified":"2023-10-02T18:47:47","modified_gmt":"2023-10-02T22:47:47","slug":"celsius-network-review","status":"publish","type":"post","link":"https:\/\/coincentral.com\/celsius-network-review\/","title":{"rendered":"What is Celsius Network | Exploring Crypto Lender’s Collapse"},"content":{"rendered":"

Celsius Network is a bankrupt cryptocurrency lending platform and crypto interest account provider; it offered depositors interest on their digital assets. Suddenly, Celsius halted all withdrawals, swaps, and transfers on June 13th, 2022. In May 2022, the company had lent out a total of $8 billion to clients, and had nearly $12 billion in assets under management.\u00a0<\/span><\/p>\n

Celsius filed for Chapter 11 bankruptcy on July 13th, 2022, and founder Alex Mashinsky was arrested in June 2023; the Department of Justice accused Mashinsky of \u201corchestrating a scheme to defraud customers of Celsius through a series of false claims about the fundamental safety and security of the Celsius platform.\u201d <\/span><\/p>\n

What Was Celsius Network?<\/span><\/h2>\n

Celsius was a cryptocurrency interest account and lending platform; storing cryptocurrency funds in Celsius would earn you interest every week.<\/span><\/p>\n

On its \u201c<\/span>About Us<\/span><\/a>\u201d page, it billed itself as \u201ca platform of curated services that have been abandoned by big banks \u2013 things like fair yield, zero fees, and lightning-quick transactions.” Essentially, a cryptocurrency retail bank that functions similarly to traditional banks:<\/span><\/p>\n

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  1. You deposit cryptocurrency into the Celsius app.<\/span><\/li>\n
  2. The company then loans those funds out to retail and institutional borrowers.<\/span><\/li>\n
  3. Every Monday, you receive a payment from the revenue that Celsius gains from those loans and other activities. The Celsius team boasted a<\/span> return of 80% of company revenue to users.<\/b><\/li>\n<\/ol>\n

    On the other side of lending, one could get a loan from Celsius by putting up cryptocurrency as collateral. Unlike most traditional loan services, Celsius loans didn\u2019t require a credit check and typically granted approval in minutes.<\/span><\/p>\n

    Celsius had about 300,000 active users (over $100 in wallets) and more than 1.7 million registered users at its peak.<\/span><\/p>\n