Posted on 08/02/2022 2:39:33 PM PDT by dynachrome
Celsius Network, once a titan of the crypto lending world, is in bankruptcy proceedings and facing down claims that it was running a Ponzi scheme by paying early depositors with the money it got from new users. Some of the 1.7 million customers ensnared by the alleged fraud are now directly pleading with the Southern District of New York to help them get their money back.
Christian Ostheimer, a 37 year-old living in Connecticut, wrote in a letter included in court exhibits that he trusted Celsius with his retirement savings and has lost more than $30,000, which has brought him into “unsurmountable tax complications.”
“It is in your hands, honorable judge to make this a different case were not the lawyers, the attorneys, the big corporations and managers get paid out first but the little man, the mom and pop, the college grad, the granny and grandpa — all those many small unsecured creditors — so that they are not like usual at the end of the chain where they lose everything,” writes Ostheimer.
The question of who gets repaid first — should that day ever come — looms heavy over the bankruptcy proceedings.
(Excerpt) Read more at cnbc.com ...
In a SHTF, grid down scenario, all of your bitcoins won't buy a can of beans or a gallon of gas.
It’s a sad situation but unfortunately there are people who decided to throw the dice on a “get rich quick” scheme that was cybercurrency - which actually was originally designed to allow for micropayments such as reading articles online for tenths of a penny.
The 37 year old in the article at least has a few decades to get back on track.
He probably owes taxes on early withdrawal.
Still stupid, but like another commenter said--stupid should hurt.
The first two groups to be paid: the IRS and the Lawyers!
When I was in my early 30s (many,many years ago) I took a course at my local community college called “Principles of Investing.” It was taught by a broker from a well known brokerage firm. One thing he said that always stuck with me was that you should never put your money into an investment that you don’t understand. You should know how that particular investment works, what it does to generate money for you, and what the risks are that may cause you to lose your money. It sounds to me like the people quoted in the article didn’t follow that advice. They probably just heard all of the hype about cryptocurrency, thought it was a sure thing, and handed over their money.
Then the politicians.
Why a withdrawl? Could he not just buy the crypro, or invest in the crypro company, inside the retirement account?
Excellent advice. Add one more: never ever invest money with someone who needs the money yesterday.
Sage advice from my late mother!
YES LOL!!
You could have an investment strategy based on arbitraging currency or commodities. Not saying it’s a good idea but it’s like trying to compare hot with blue.
shrug. I’m just guessing about the early withdrawal as well. It’s the only reason I could come up with for tax issues on a loss.
I won’t touch crypto currency with a ten foot pole.
I don't get the "unsurmountable tax complications" thing, though. Hunter Biden owed the IRS $400K and nobody came after him...
“Cancel the 10ft pole!”
We do if they're Phil Mickelson lol.
if the dollar drops 30% in one day, we’re all f’ed anyway
Yeah, like an EMP detonation
Which wouldn’t surprise me much
These days....
Yeah, I was flat broke and owed over $34K at 39, in 1994. I worked hard, lived frugally, and paid it off in about 3 years. After that I kept working and retired at 65, not really wealthy but not destitute (yet).
These cryptos are extreme speculative vehicles, it doesn’t make them bad, but all the crying about committing suicide won’t get your money back.(They’ll most likely get a small amount back if this crypto was a racket)
Remember there is:
1) Hedge Finance
2) Speculative Finance
3) Ponzi Finance
All three are important.
If you’re investment minded stay in the first two categories because if you chase #3 down a rabbit hole, you’ll “lose your ass.”
Yep.
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