Because it was a ponzi investing in other ponzis? If I want to be nice, because it was a bank without license making bad loans and promising too much returns?
Every boom period was full of snake oil salesmen. Nothing new here. You certainly wouldn't judge today's complex Wall Street finance by the over speculation of the 1920s. People won't judge cryptos but Celsius and the dummy's that were lured into their scam.
Like many of the other crypto entities, Celsius was nothing more than a fraud. Now New York State is taking legal action. NY AG Sues Alex Mashinsky, Founder of Celsius Network, Charging It Was All a Fraud https://gritdaily.com/ny-ag-sues-alex-mashinsky-founder-of-celsius-network/
No surprises here... the entire operation was a fraud. Celsius Was Allegedly Propping Up Its Own Crypto Token With Customer Funds Shoba Pillay, the person tapped to examine Celsius’ goings on, said that execs including Alex Machinsky had sold tens of millions-worth of its native CEL token. https://gizmodo.com/celsius-crypto-alex-mashinsky-cel-1850052841
Fahrenheit wins bid to acquire assets of crypto lender Celsius The consortium, which includes Arrington Capital, outbid NovaWulf to acquire Celsius Network’s assets, while the Blockchain Recovery Investment Consortium serves as a backup bid. https://cointelegraph.com/news/fahrenheit-wins-bid-to-acquire-assets-of-crypto-lender-celsius Court filings have revealed that cryptocurrency consortium Fahrenheit emerged as the successful bidder to acquire insolvent crypto lender Celsius Network. The acquisition involves Celsius assets previously valued at approximately $2 billion. The court filings, submitted in the early hours of May 25, show that the consortium will obtain Celsius Network’s institutional loan portfolio, staked cryptocurrencies, mining unit and other alternative investments. The group must make a $10 million deposit within three days to finalize the agreement. After a lengthy auction process, Fahrenheit — a consortium of buyers comprising venture capital firm Arrington Capital and miner US Bitcoin Corp — was chosen as the successful bidder.The Blockchain Recovery Investment Consortium (BRIC), including Van Eck Absolute Return Advisers Corp and GXD Labs, secured the backup position. Rival bidder NovaWulf, which was initially favored, ultimately lost out. As per the agreement, the new company will receive a substantial amount of liquid cryptocurrency, estimated to be between $450 million and $500 million. US Bitcoin Corp will also construct crypto mining facilities, including a state-of-the-art 100-megawatt plant. While Celsius and its creditors have accepted the bid, regulatory approval is still required to complete the acquisition. Bankruptcy court judge Martin Glenn had previously cautioned about potential “regulatory roadblocks” that could impede Celsius’s sale. Similarly, crypto exchange Binance.US terminated its purchase of Voyager’s $1 billion in assets due to federal officials appealing the sale, citing the uncertain regulatory environment in the United States. In the coming weeks, Celsius intends to negotiate and publicly file a plan sponsor agreement with Fahrenheit, a backup plan sponsor agreement with BRIC, a revised Chapter 11 plan and a disclosure statement, all of which remains subject to bankruptcy court approval. Following a significant decline in crypto prices, Celsius filed for bankruptcy in July 2022 due to a surge in withdrawals resembling a bank run, revealing underlying liquidity problems. Its collapse foreshadowed a tumultuous period for the crypto industry, marked by the subsequent downfall of various prominent exchanges, lenders and venture capital firms, leading to a prolonged “crypto winter” in the industry.