The rise and fall of Celsius: when "yield" was the product
In 2021 Celsius sold itself as a safer bank for crypto. It paid double-digit yields on deposits and pushed its own CEL token, which peaked near $8 in June 2021.
Then 2022 hit. After Terra collapsed in May, users rushed for the exit. On June 12, 2022 Celsius froze all withdrawals, swaps and transfers, citing "extreme market conditions."
On July 13, 2022 it filed for Chapter 11. The filing showed about $4.3B in assets against $5.5B in liabilities, a hole of roughly $1.2B, with over $4.7B owed to users (per Reuters and Blockworks). The fine print said depositors had handed over "all right and title" to their coins.
Founder Alex Mashinsky pleaded guilty to fraud and got 12 years in prison in May 2025.
Lesson: if you can't explain where the yield comes from, you are the yield. Treat a very high APY as a risk sign, not a gift.
$BTC $ETH #CryptoHistory #Celsius #CryptoLessons #NotYourKeys
Not financial advice.
In 2021 Celsius sold itself as a safer bank for crypto. It paid double-digit yields on deposits and pushed its own CEL token, which peaked near $8 in June 2021.
Then 2022 hit. After Terra collapsed in May, users rushed for the exit. On June 12, 2022 Celsius froze all withdrawals, swaps and transfers, citing "extreme market conditions."
On July 13, 2022 it filed for Chapter 11. The filing showed about $4.3B in assets against $5.5B in liabilities, a hole of roughly $1.2B, with over $4.7B owed to users (per Reuters and Blockworks). The fine print said depositors had handed over "all right and title" to their coins.
Founder Alex Mashinsky pleaded guilty to fraud and got 12 years in prison in May 2025.
Lesson: if you can't explain where the yield comes from, you are the yield. Treat a very high APY as a risk sign, not a gift.
$BTC $ETH #CryptoHistory #Celsius #CryptoLessons #NotYourKeys
Not financial advice.
