News By  Kateryna Salnichenko
Newbie 1652 21 May 2022
Newbie

User rebellion and attacks on the Celsius Network

Crypto lending platform Celsius Network has faced customer dissatisfaction amid the recent market slump and attacks from unknown intruders. The company’s CEO Alex Mashinsky announced this.

In addition to the constant statements by the SEC about the illegal activities of crypto companies, the operation of the platform was exceptionally negatively affected by the crash of TerraUSD and LUNA, which led to a general collapse of the crypto market and a fall of the company’s token CEL by more than 60%. During communication on Twitter Spaces, many users asked Alex Mashinsky about the state of their assets, which turned out to be liquidated.

Discussing the protection of investors’ rights, the company’s CEO emphasized that the reasons for the fall of CEL were not only the massive collapse of digital currencies but also attacks on the platform. However, he did not provide more detailed information about the attackers’ actions, leaving users without any proof.

During an intense debate with investors who threatened to leave the platform, Alex Mashinsky claimed to have lost hundreds of millions of dollars due to recent events. So, in a few weeks, the company’s assets decreased from $16.9 billion to $11.8 billion. In addition to the opportunity to communicate with the CEO, Celsius users received an email from representatives of the platform. It reported on the company’s continued commitment to the crypto community, despite expressed uncertainty in the industry. But the words of Alex Mashinsky about the attack on the company remained without comment.

Celsius Network is one of the world’s leading crypto lending companies with over $11 billion in assets. It is part of a growing ecosystem of institutions that specialize in accepting deposits in digital currencies and guaranteeing superior returns to their clients. Also among the company’s services is the provision of credits with a low-interest rate secured by tokens.

Celsius Network investors can earn income in the form of deposited cryptocurrency and in the format of the native token of the CEL platform, issued in 2018. The last option is the most attractive for customers due to the highest possible return.