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Gizmodo: Crypto Platforms Are Halting Withdrawals as Bitcoin Tanks Over 13%

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Teh_Lurv

Teh_Lurv

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Oct 25, 2017
6,095
As the value of Bitcoin and other crypto continues to decline, Gizmodo is reporting that crypto platforms Celsius and Bianance have halted Bitcoin withdrawals.

The Celsius crypto network has halted all trading, including withdrawals, according to a press release from the company released overnight. The unusual move comes as major cryptocurrencies plummeted over the weekend, and questions remain about whether Celsius will ever allow users to withdraw their money, thanks to some rather slippery language in its terms of service.
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Another major cryptocurrency exchange platforms followed suit Monday. Binance halted withdrawals for Bitcoin as the cryptocurrency's value tanked, claiming in a tweet the stoppage was "due to a stuck transaction causing a backlog."
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Celsius, which claims to have 1.7 million users, allows people to trade major cryptocurrencies like bitcoin (down 13.2% over the past 24 hours) and ethereum (down 17%), all while promising incredibly high returns for people who were holding (HODLing, in the community parlance), with the service.
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NPR's Marketplace ran a piece about average people losing their savings invested in a crypto savings account when stablecoin Luna crashed. I can't imagine the number of people on those platforms watching helplessly as their life savings tied up in crypto is evaporating way.

gizmodo.com

Crypto Platforms Are Halting Withdrawals as Bitcoin Tanks Over 13%

Bitcoin's value has plunged. Celsius' terms of service say that "you may not have any legal remedies" to get your money back.
gizmodo.com gizmodo.com
 
Lkr

Lkr

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Oct 28, 2017
9,512
it's a good thing it's decentralized so establishment financial institutions can't prevent you from accessing your funds!

oh…
 
Tamanon

Tamanon

Banned
Oct 25, 2017
19,729
Of note, the Binance halt seems to be over a stuck transaction, and separate, theoretically.

But, not great on the whole.
 
Aztechnology

Aztechnology

Community Resettler
Avenger
Oct 25, 2017
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Lkr said:
it's a good thing it's decentralized so establishment financial institutions can't prevent you from accessing your funds!

oh…
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Hahaha

There's not a single level I've seen it work independently on that's not literally just reinventing the wheel in a worse way.
 
Real

Real

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Oct 28, 2017
5,417
jay-z-yikes.gif
 
Kouriozan

Kouriozan

Member
Oct 25, 2017
21,076
A market so free, they're locking you from accessing your fund.
The good thing is the energy usage related to crypto money will drop as well.
 
matcha pocky

matcha pocky

Member
Oct 27, 2017
276
I feel bad for people who have their entire savings tied up in crypto - but all-inning on one of the riskiest, most speculative assets right now is probably not a great investment strategy...
 
Empty Your Head

Empty Your Head

Alt Account
Banned
Feb 1, 2022
1,579
I started a new job last week and everyday, one of my new coworkers kept trying to push me into investing in crypto and told me he won't ever do any traditional investments because that's not the future and that crypto was better for regular people.

When I pushed back on the sentiment that crypto was somehow safer and better, he became agitated and implied I was someone that wished to "remain broke."

I'm off today; I wonder how this news makes him feel.
 
Jebusman

Jebusman

Member
Oct 27, 2017
4,081
Halifax, NS
Halting withdrawals until they can scrounge together enough liquid currency to meet withdrawals, or just stalling until the value goes back up and they won't be forced to default on their loans, surely isn't going to backfire the moment withdrawals are opened again.
 

Alternade

Member
Oct 27, 2017
711
I know that some people are freaking out not being able to access their funds in free fall but how did ANYONE think decentralized banking thats not federally backed would be a good idea in our current environment? Especially after what Robinhood pulled last year!
 
Getting Away With It

Getting Away With It

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Oct 27, 2017
798
Teh_Lurv said:
NPR's Marketplace ran a piece about average people losing their savings invested in a crypto savings account collapsed when stablecoin Luna crashed. I can't imagine the number of people watching helplessly as their life savings tied up in crypto is evaporating way.
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*Waits for someone to come in and so "hurr durr then they shouldn't have been investing in crypto"*

On topic, though this is pretty awful. Best possible outcome here is that Celsius have the funds and they just aren't liquid/accessible at this point in time (e.g they took some of the ETH deposits and staked them for the merge) rather than being actually insolvent, however that doesn't really help anyone with funds on the platform right now.
 
Lobster Roll

Lobster Roll

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Sep 24, 2019
34,327
nihilence said:
What if your hodling these?

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I recently took a trip to Europe and my debit & credit cards worked at every single location I went to for the entirety of the trip. The entire time, I kept thinking to myself - damn - I really wish this was all done with a physical cash currency that nobody's ever heard of instead.
 
LProtagonist

LProtagonist

Avenger
Oct 27, 2017
7,576
I had what little "fun money" I put aside in it, but I'm out now. Just going to use that money for something actually fun. I'm not bothering with investing anymore. My retirement is in a pension fund that a significant portion of my pay goes into already so.
 
Enthus

Enthus

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Oct 27, 2017
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I was in Austin this past weekend at the same time as the crypto convention.

The grifters were out in full force. My friend was told she needed to mint her brothers recipes into NFTs (he is a pastry chef)
 
Arkanim94

Arkanim94

Member
Oct 27, 2017
14,113
Alternade said:
I know that some people are freaking out not being able to access their funds in free fall but how did ANYONE think decentralized banking that's not federally backed would be a good idea in our current environment? Especially after what Robinhood pulled last year!
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"but what if I'm the one who'll scam other suckers this time around?"
 

Randomly Generated

Member
Oct 27, 2017
17,438
Empty Your Head said:
I started a new job last week and everyday, one of my new coworkers kept trying to push me into investing in crypto and told me he won't ever do any traditional investments because that's not the future and that crypto was better for regular people.

When I pushed back on the sentiment that crypto was somehow safer and better, he became agitated and implied I was someone that wished to "remain broke."

I'm off today; I wonder how this news makes him feel.
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It's so weird how evangelical these people are.

I mean it's not, because it's essentially a cult, but you know what I mean.
 
Getting Away With It

Getting Away With It

Member
Oct 27, 2017
798
Lkr said:
it's a good thing it's decentralized so establishment financial institutions can't prevent you from accessing your funds!

oh…
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But that's the point, this ISN'T decentralised, Celsius was a centralised exchange. A decentralized exchange wouldn't have this issue and couldn't prevent people from withdrawing their funds (but it of course has many other possible issues, like smart contract risk etc). So this is one of the arguments against centralised exchanges ("not your keys, not your crypto"), but there is just risk on all points really.
 
Jebusman

Jebusman

Member
Oct 27, 2017
4,081
Halifax, NS
Alternade said:
I know that some people are freaking out not being able to access their funds in free fall but how did ANYONE think decentralized banking thats not federally backed would be a good idea in our current environment? Especially after what Robinhood pulled last year!
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Large swaths of people lost money in the 07-08 crash and no longer trusted federal regulation of anything. To them, federal backing is a negative, not a positive.
 
Indy in the Fridge

Indy in the Fridge

Banned
Oct 30, 2017
15,278
remember when crypto was just some weird secret money that people on the dark web used to buy drugs

now it's a fucking MLM scheme.
 

rusty chrome

Banned
Oct 25, 2017
8,640
It's hard for me to feel bad for crypto bros. I know a lot of them and all of them come off like pushy assholes that want to force you to join their cause, in the case that when their ship goes down, they won't be alone. "Why am I even your friend if you don't wanna do cryptos with me?"
 
Empty Your Head

Empty Your Head

Alt Account
Banned
Feb 1, 2022
1,579
Randomly Generated said:
It's so weird how evangelical these people are.

I mean it's not, because it's essentially a cult, but you know what I mean.
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It was like someone trying to convince you to join their pyramid scheme. A bizarre experience for me as I'd bring up crypto prices dropping and would be met with "Yeah, but it just means you can buy more for cheap and become even better off later!"

Like, I'd rather invest all my money into Pokémon cards and Hot Wheels. Those are at least, tangible items.
 
Slayven

Slayven

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Oct 25, 2017
93,051
Enthus said:
I was in Austin this past weekend at the same time as the crypto convention.

The grifters were out in full force. My friend was told she needed to mint her brothers recipes into NFTs (he is a pastry chef)
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I hope your friend told that person to go away
 
Tamanon

Tamanon

Banned
Oct 25, 2017
19,729
Lobster Roll said:
I recently took a trip to Europe and my debit & credit cards worked at every single location I went to for the entirety of the trip. The entire time, I kept thinking to myself - damn - I really wish this was all done with a physical cash currency that nobody's ever heard of instead.
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To be fair, the EU helped greatly on making that work. But yeah, it should be universal for Visa/MC/Competitor
 

Alternade

Member
Oct 27, 2017
711
Jebusman said:
Large swaths of people lost money in the 07-08 crash and no longer trusted federal regulation of anything. To them, federal backing is a negative, not a positive.
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I get the hesitation after getting burned but money is one of the few things I "trust" the government with. We all missed the crypto boat several years ago. Anyone telling you to jump in now is selling snake oil.
 
Surakian

Surakian

Avenger
Oct 27, 2017
10,823
Lol I thought people invested their money into crypto to avoid things like this. Guess I'm glad I have no crypto investments beyond what Stash has foolishly invested for their Smart Portfolios.
 
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