With the rise of inflation hitting everyone hard, the cryptocurrency market has been in turmoil recently.
While some crypto investors were blindsided by the volatile market, others have actually tried to warn others of what was to come.
One Redditor was such a person, as they urged people in the r/CryptoCurrency sub on 1 June to withdraw their funds as they believed the crypto lending platform Celsius was insolvent.
They captioned the post, “Celsius is insolvent, please get your funds out now” before explaining why they were encouraging people to withdraw their money.
In the post, the anonymous Reddit user explained that they have been involved with cryptocurrency since 2011 and are a “long-term investor in Celsius”.
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They also revealed they had recently withdrawn all of their funds from Celsius, saying “something about it smells wrong to me”.
Outlining their reasoning, they wrote: “1. Delayed withdrawals, or very annoying measures put in place for withdrawals.
“Classic hallmark of an insolvent or fraudulent operation. The app makes it a pain to withdraw funds, while depositing is easy and instant.
“2. Loans from Tether. AKA not solvent. Anything touching Tether I don't want anything to do with.
“3. The CEO and his wife have been dumping CEL tokens for the last year. If they're dumping, the writing's on the wall source.”
Ending their post, they once again said: “For these reasons, I'm out. Please get anything you can out of Celsius.
“I watched a lot of videos with the CEO on various YouTube channels, I don't think he's necessarily fraudulent, but with the halted withdrawals, Tether loan influx, please, get your money out.”
It now seems the Redditor may have been correct in his assessment – as of yesterday (13 June), assets have been frozen by Celsius leaving investors unable to withdraw funds.
In a tweet, the company wrote: “@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts.
“Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community.
\u201c.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2\u201d— Celsius (@Celsius) 1655086207
It comes at last month, one Bitcoin trader lost $100 million in one day after the market suddenly crashed.
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