When someone runs off with your money, to say it’s a major slap in the face is an understatement.
However, when their sheer incompetence leaks your personal details so that your family, friends, and colleagues find out you fell for a Ponzi scheme, it’s a double whammy.
Such is what happened in the latest twist of the Celsius Network bankruptcy. Twitter account Crypto Vinco (previously known as Crypto Whale) reported that the latest paperwork filed by Celsius in its bankruptcy proceedings revealed the names, dates, transactions, and amounts of every user on its platform.
Celsius’s bankruptcy filing includes 14,500+ pages — revealing the names, dates, transactions, and amounts of EVERY single user on its platform.
First they run a giant Ponzi and steal everyone’s money, and now they dox all their clients… pic.twitter.com/H2k15b81si
— Vinco (@CryptoVinco) October 7, 2022
More incompetence from team Celsius. Is this the future of finance?
It’s no secret that the entire digital currency industry is riddled with a combination of criminality and incompetence. From bridge hacks to exchange heists to fraud on an industrial scale, we’ve seen it all over the last few years, and it’s only getting worse as time goes by.
The latest move by Celsius is part of a series of incompetent and dishonest activities that have jeopardized user interests. Celsius victim Tiffany Fong has been exposing the firms’ shenanigans on Twitter. To say it is unprofessional is putting it mildly.
Recently, I received an audio file of Celsius Network's Internal All Hands Meeting, which took place on Sept 8, 2022. I transcribed the entirety with painstaking accuracy here:https://t.co/NzkEkmnPbz
— Tiffany Fong (@TiffanyFong_) September 13, 2022
As the sheer magnitude of Celsius’ fraud and farce becomes clear, several high-profile executives have begun to bail, including its CEO Alex Mashinsky.
Is this what we can expect from the so-called future of finance? If so, one might wonder why we don’t just stick with the traditional system where at least FDIC deposit insurance and basic regulations combating fraud apply.
The digital currency industry can’t challenge the system, but Bitcoin can
As time goes on, it becomes clear that those who seek to challenge banks and create alternatives to traditional payment systems can’t even manage basic tasks correctly, let alone pose a threat to the existing system. Celsius Network is the poster child for the utter failure known as ‘crypto.’
With its signature slogan, ‘Unbank Yourself,’ Celsius pitched itself as the friendly fintech alternative to traditional banks, which it painted as the enemy. Naive investors, not realizing they were handing huge chunks of money over to incompetent swindlers, bought it hook, line, and sinker, and now they are left without their funds while the company struggles through Chapter 11 bankruptcy.
At CoinGeek, we’ve repeatedly explained that ‘crypto’ is an aberration, a deviation from the true purpose of Bitcoin as Satoshi Nakamoto designed it. Political extremists, idealists, and opportunists of all kinds have distorted the original purpose—a scalable peer-to-peer electronic cash system—and created a monster that devours most of its users alive.
Thankfully, the house of cards is falling fast; before long, not much will be left. Hopefully, as Celsius and other incompetents disappear, Bitcoin will take center stage again and will reach its full potential.
Follow CoinGeek’s Crypto Crime Cartel series, which delves into the stream of groups from BitMEX to Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple,
Ethereum, FTX and Tether—who have co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) players in the market.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.