The Crypto Keeper
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 ...
We don’t bailout big Vegas losers.
37 year old.
Retirement savings?!
Caveat Emptor.
True that. I wish I could have back the retirement savings my ex drained from me in my 30’s with an ugly divorce. LOL
If not, what's to prevent someone claiming that he owned $300,000? Or $3 million?
If at 37, a $30K hit is ‘insurmountable’, then you are probably a loser. 30K is like buying a cheap car - and while it would suck to lose 30K, it should be ‘surmountable’ for a hard working person.
So these people did not buy crypto they had control over?
They make it sound like they invested in the business, proper.
Interesting.
A fool and his money are soon parted.
If indeed this thing was run as a Ponzi Scheme, then some executions should be in order.
Go figure.
Stupid SHOULD hurt. That way you get less of it. Plus, how does LOSING money create ‘unsurmountable’ [eyeroll] tax complications?
Crypto is NOT an investment strategy... it’s currency
What to Jim Cramer talk about this company a year ago?
https://decrypt.co/102828/jim-cramer-turns-bearish-on-crypto-is-that-bullish?amp=1
At least he is only 37, and has time to recover. We were in our 50s during the 90s tech crash.
Great Read! https://mobile.twitter.com/cramertracker/
quote “his retirement savings and has lost more than $30,000, which has brought him into “unsurmountable tax complications.”
HUH?
how can $30,000 be someones retirement? and how can losing that little bring insurmountable tax issues?
The Crypto Keeper
Right. He probably doesn’t understand taxes and hasn’t asked a professional. I haven’t read the article, just came here for the anti crypto comments.
If he has traded crypto in an out all year, he could gotten a statement that says he owes all this tax, without taking into consideration the losses incurred, during all those trades.
I’m not educated in the tax field, but he may show profits of $700,000 and losses of $670,000 or something.
No need to flame my ignorance on the subject, I just remember a buddy’s son getting a scary letter from the IRS about owing $100,000’s, when in reality he didn’t owe anything because he lost money trading.
I’m not a financial advisor and this is not financial advice.
In fact, I am what you could call, a retarded crayon eating ape
I suspect you are right.
So is cash, but lots of people park their assets in cash.
And, with the crazy crypto values roller coaster, I think an awfully lot of folks thought of it as an investment.
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