--- title: "Crypto Lender That Kept Bragging About How Great It Was Files for Bankruptcy" description: "Golden Child Embattled crypto lender Celsius finally filed for bankruptcy yesterday, and there's still no telling when, or even if, customers will ever get their money back. The cryptosphere titan, which boasted a loud-and-proud \"Unbank Yourself\" motto, attracted bigwig and amateur investors alike with a wildly high-yield savings system marketed as a greed-free, fee-free alternative […]" date: "2022-07-14" modified: "2022-07-14" authors: - name: "Maggie Harrison Dupré" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/mharrison" url: "https://futurism.com/the-byte/celsius-files-bankruptcy" categories: - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "bankruptcy" - "celsius" - "crypto" - "the digest" --- # Crypto Lender That Kept Bragging About How Great It Was Files for Bankruptcy ![Embattled crypto lender Celsius finally filed for bankruptcy yesterday, and there's still no telling when, or if, customers will ever get their money back.]() *\Image: Getty Images/Futurism\* ## Golden Child Embattled crypto lender Celsius finally filed for bankruptcy yesterday, and there's still no telling when, or even if, customers will ever get their money back. The cryptosphere titan, which boasted a loud-and-proud "Unbank Yourself" motto, attracted bigwig and amateur investors alike with a wildly high-yield savings system marketed as a fee-free alternative to traditional banking. While these incredibly high returns worried some analysts, the offering impressed many eager clients, and back in May, the firm held over $12 billion dollars in managed assets, along with roughly $8 billion in client loans. But early last month, Celsius responded to [what it cited]() as the "extreme" conditions of the widespread [crypto crash]() by [halting all withdrawals]() and putting those billions in assets on ice. Now, amid bankruptcy, debt, and multiple investigations, it seems like there's little hope for those who put their faith — and cash — into the platform. ## Unbank Yourself Bankruptcy isn't Celsius' only legal trouble. Last week, a former investment manager [sued the crypto leader]() for artificially inflating the price of its own coin and fraud, among other allegations. "While Celsius continued to market itself as a transparent and well-capitalized business, in reality, it had become a Ponzi scheme," reads [the suit](). The anguished firm is also embroiled in regulatory investigations in six states, with Vermont's Department of Financial Regulation [claiming yesterday to *CNBC*]() that they believe the organization used "customer assets in a variety of risky and illiquid investments, trading, and lending activities." There are certainly rough waters for Celsius ahead, but the company's "[Banks are Not Your Friends]()" shirt-wearing co-founder and CEO, Alex Mashinsky, looks to be putting on a brave face. Well, at least a braver face [than others](). "I am confident that when we look back at the history of Celsius, we will see this as a defining moment," the Cryptbro in Chief [said in a Wednesday statement](). "Where acting with resolve and confidence served the community and strengthened the future of the company." **READ MORE**: [*Hope for depositors dwindles as crypto lender Celsius files for bankruptcy*]() \[*The Washington Post*\] **More on the crypto crash:** [*Crypto Ceo Warns That Exchanges Are "Secretly Already Insolvent"*]() ## Author At Futurism, I've reported extensively on the rise of AI as a cultural and business force shaping the media industry, and more broadly how those dynamics are changing how we all consume and share information and relate to one another. I'm also fascinated by public health policy and ethics, the role of emerging tech in politics and governance — and the powerful people and forces at those intersections — climate change, and the environment. My investigation on Sports Illustrated's use of AI-generated authors with fictional biographies won a 2024 Mirror Award for "Best Story on Media Coverage of Artificial Intelligence in Journalism and the Media" from Syracuse University's SI Newhouse School, I contributed to Niemen Lab's 2025 Predictions for Journalism series, and I've discussed my work for Futurism during appearances on NPR, CNN, the BBC, the CBC, and more. I grew up in rural Pennsylvania and attended the University of Massachusetts Amherst, where I played Division I field hockey for the Minutewomen as a midfielder. Since then, I've lived in New Orleans, Louisiana and Manhattan, New York. I spend my free time running, reading, perusing archival fashion, and searching for the world’s best negroni. I also have a debonair tuxedo cat, Westley, who's named after "The Princess Bride." ### Author social links [Bluesky]()