Should You Trade with Celsius?
How would you feel if you discovered an awesome crypto lender that claimed you would get a 30% return? What if they said they could do this because they were pioneers in decentralized finance and they didn’t have to deal with government rules or costly regulations? If you were one of Celsius’ 500,000 clients, you may be regretting your decision to open an account and also could be wondering when your funds will be available. That’s because Celsius has frozen $8 billion in customer accounts.
We Have Found Some Problems with Celsius
Celsius may not be a scam, like many of the unregulated brokers and sketchy financial operations we review. However, if you decided to cast your lot with Celsius, or at least have entrusted your funds, you don’t have access to them now. Locking down funds is a tactic of a Ponzi scheme, and although Celsius may not be doing anything illegal, it did entice people into enjoying huge gains from unregulated financial services (since the blockchain isn’t regulated, it may not be bypassing any laws, but still, there isn’t any oversight). Still, you could fault Celsius for encouraging clients to take the chance in a volatile asset like cryptocurrency and now these clients don’t have access to their funds.
Red Flags Concerning Celsius
Celsius has told CNBC that it isn’t insolvent and can release funds to clients if it wished. However, the steep fall in cryptocurrency and market volatility has caused Celsius to say that, at least temporarily, transactions on its platform have been stopped. It’s worth noting that other crypto banks have been fined by the SEC and states for unregistered securities.
So is Celsius a scam or not? Does it really matter to you at this point if you can’t withdraw your funds? If you have an account with Celsius and want to locate your funds, talk to us.
What Should You Do If You Have an Account with Celsius?
We do not recommend opening an account with Celsius. If you do hold an account with this broker, close it right away and ask for a withdrawal of your funds. If the broker will not allow you to retrieve your funds, talk to ChargeBax professionals right away. We will investigate the matter, track down the broker and your funds, and will help you prepare your claim.