DESPERATE TIMES

She Sent Crypto Firm Her Baby Ultrasound—and Still Couldn’t Get Her Money Back

Bankrupt Celsius froze its customer accounts, leaving some in dire straits.

A pregnant woman sent an ultrasound of her unborn child to the founder of the imploding cryptocurrency lending service Celsius, in hopes of convincing him to let her withdraw funds from her frozen account.

The lending service blocked customers from withdrawing funds on June 12, amid a massive crypto market downturn, leaving billions of dollars in customer funds locked up in the platform. It filed for bankruptcy a month later.

Dozens of people have submitted letters to the judge in the case, including the pregnant woman, an Australian who says she needs the fund tied up in her Celsius account to pay for her upcoming birth, major surgery for her aunt, and schooling for her other two children.

“I was planning to withdraw from Celsius to fund my birth and my aunt’s operation in late June, but due to the withdrawal halt, I don’t have access to any funds and my life has become so miserable now,” she wrote.

The woman included an email she sent to Celsius founder Alex Mashinsky on June 15, begging to withdraw even a portion of her money.

“I am 5.5 months pregnant with my first child,” she wrote, attaching an ultrasound image of the fetus to the email. “I am expecting to give birth in early October and I do need the fund to pay for the hospital, doctor, and baby items such as cot, clothes, nappies etc. I also need the fund to pay for school fees for my two other school aged children.”

THE GAME IS RIGGED

Panic in the Crypto Markets After Celsius Freezes Assets

Noah Kirsch

A spokesperson for Celsius did not immediately respond to calls and emails seeking comment.

Celsius operated similarly to a traditional bank, but for crypto, giving customers a percentage return on the currency they kept in the platform. According to an affidavit filed by Mashinsky, the company had 300,000 active users and approximately $6.0 billion in assets as of earlier this month.

The pregnant woman is asking the judge to bar Mashinsky and other Celsius employees from taking their salaries as part of the bankruptcy deal and to let the customers weigh in on possible reorganization plans. Dozens of customers have sent similar letters to the judge, including one who said he’d put “a large chunk” of his life savings on the platform, and another who said his brother attempted suicide after his funds were frozen. Many of the responses were compiled in a Twitter thread by crypto critic Molly White.

A former investment manager for the company, Jason Stone, filed a separate lawsuit against Celsius earlier this month, calling it a “Ponzi scheme” that failed to implement “basic risk management strategies” or at times to perform “basic accounting.” The company has yet to file a response.

Lawyers for Celsius have argued in the bankruptcy case that most of its losses were due to forces outside its control, and have pushed for the company to be able to pay back creditors through its bitcoin mining business. The next hearing is scheduled for August 8.

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Emily ShugermanSenior Reporter

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