Respite for Users of Failed Crypto Exchange, Celsius

There is some relief for Celsius customers after a federal bankruptcy Judge ordered the company return $44 million to customers, following agreement that crypto held by Celsius belonged to users on the platform, not Celsius. This is a drop in the ocean as the Wall Street Journal (WSJ) estimated the company owed around $4.7billion in cryptocurrency to its users.

In a brutal twist of fate, the aptly named Celsius plummeted earlier this year and was forced to file for bankruptcy in July 2022. Sadly, this isn't an isolated case and cryptocurrency exchanges are learning the hard way, that they cannot just 'wing it'. Voyager, another consumer-facing crypto lender, filed for bankruptcy this year, and the latest high profile crash relates to FTX and the heavily criticised Sam Bankman-Fried.

It's time for exec leaders at the helm of these behemoth cryptocurrency exchanges to put their big boy pants on and operate these exchanges like a fully fledged grown up company. That means putting a Board in place and having proper corporate governance framework, and with that, ensuring that the right people are in the right roles, to safeguard shareholders and customers alike.

All this being said, whilst FTX won't be the last crypto exchange to crash, the markets will recalibrate and we will be left with the exchanges that are being managed competently, and that can only be a good thing. The regulatory landscape for cryptocurrencies is still evolving in many parts of the world, which makes cryptocurrency exchanges vulnerable to uncertainty and compliance issues, and that will continue until we have regulatory certainty.

For further reading of the Celsius Judgment you may also want to check out the Coin Telegraph article -

Link to Coin Telegraph article

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