Celsius CFO Arrested. How Trustworthy is Celsius? A quick fact check!

Celsius CFO Arrested. How Trustworthy is Celsius? A quick fact check!


So there was some Celsius Fud this week and that made me wanna have a closer look into these guys. Because Not your keys----

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What the FUD?

So what was the FUD about, Yaron Shalem, the chief financial officer of cryptocurrency lending platform Celsius, was one of the seven people arrested in Tel Aviv this month in connection with Israeli crypto mogul Moshe Hogeg, CoinDesk has confirmed.

Celsius Tweeted:

“While this is in no way related to the employee’s time or work at @CelsiusNetwork, the employee was immediately suspended. We have also verified that no assets were misplaced or mishandled,” the tweet said.

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What´s Celsius?

The Celsius crypto wallet is a platform to earn and borrow up over 30 different cryptocurrencies. Manage your crypto portfolio and earn compounding rewards (up to 15% APY!) in BTC, ETH, CEL, and more!

Qualifying users can get instant approval for a dollar or stable coin crypto loans at just 1%. The best part … you’ll never pay any fees! Celsius covers all network costs and will never charge transfer fees, origination fees, or withdrawal fees.

 

So what did I find on Celsius:

Celsius does not have an insurance policy

 But Fireblocks, their custodian, provides insurance on the digital assets held by Celsius.    

However, we generate interest rewards by deploying assets. When these assets are out of Celsius’s control, they can’t be insured by such insurance.   To ensure coin loans are always returned to Celsius, we require borrowers to post collateral of up to 150% (which means that the borrower gives Celsius an alternative asset as collateral for the asset they are borrowing) or we conduct thorough due diligence reviews of borrower’s financials and repayment ability. In their 3+ years of business, Celsius has never had a hack, security breach, or loss of funds.

What´s Fireblocks

The only security platform that ensures assets in storage, transfer, and E&O. Fireblocks is SOC 2 Type II certified and completes regular pen testing from ComSec and NCC Group.  An easy-to-use digital asset security platform that helps financial institutions protect digital assets from theft or hackers by using breakthrough MPC & patent-pending chip isolation technology to secure private keys, API credentials and eliminate the need for deposit addresses.

Fireblocks is still considered a startup by TechCrunch but was founded in 2018 and is seated in NY. They seem to have a pretty good rep so far.

What´s not to like about Celsius?

(DeFi) platform with Highly centralized control

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"We have the right to suspend, freeze or close your Celsius Account at any time for any reason without advance notice, including by blocking your access to the Account or the Services."

Or another section, which states that Celsius is not liable for any "errors" or mistakes it makes that result in a financial loss to you. Further, you would be liable for all their legal expenses and fees, which could be deducted from any funds in your Celsius account.

The terms go on to state, "You are liable for all expenses and fees we incur for such conflicts or disputes, including internal costs and attorneys' fees, and we may charge or deduct them directly from your Celsius Account balance."

This last bit get´s me worried. Not liable for any "errors" or mistakes it makes that result in a financial loss to you & I am liable for all expenses and fees Celsius incurs for such conflicts or disputes, including internal costs and attorneys fees.

Yes, I am using Celsius and my weekly rewards are about 45 cents on a $500 deposit. That makes less than $20 annual I think that for that $20 I don't wanna be liable for Celsius´ mistakes and attorney fees.

My plan is to not stop using their wallet, but keep using it for stacking bits of crypto I make her and there. But that $500 I accumulated will go safely into a wallet for which only I hold the keys.

 

Post Scriptum:

 

Platforms where I Earn Crypto for my Content (Affiliate Links):

Torum - https://www.torum.com/signup?referral_code=bitcoinbaby

NoiseCash - https://noise.cash/u/BitcoinBaby

ReadCash - https://read.cash/r/BitcoinBaby

Hive - https://hiveonboard.com/?ref=whywhy

Peaked - https://peakd.com/register?ref=whywhy 

Publish0x - https://www.publish0x.com?a=l9avg4xnbG

 

Exchanges where I trade Crypto (Affiliate Links):

BitVavo Exchange- European. Higher trading fees (0.25 %) & Great Customer Service - https://bitvavo.com/?a=C21A94C2FD

Kucoin Exchange - Hong Kong. Okay, trading fees (0.1 %) & Contains a lot of low cap gems. Customer Service takes time - https://www.kucoin.com/ucenter/signup?rcode=rJ821BX&lang=en_US&utm_source=friendInvite

Bitmart - Global (USA allowed) Low, trading fees if you use BMX (0.025 %) & Contains a wide variety of coins - https://www.bitmart.com/en?r=7XFCVy

 

Places where I do Liquidity Mining and Staking  

Cake DeFi.  Here you have to invest $50 dollar and you get 30 dollars for free. You can withdraw your 50 dollars at any time or use them for Liquidity Mining, Staking, or lending to earn more DFI rewards. The 30 dollars is locked for 6 months but earning you interest of the 6 months. https://app.cakedefi.com/?ref=197670 

Celsius. Celsius Network provides a platform of curated services with fair interest, zero fees, and lightning-quick transactions. You can store your crypto and get rewards or lend crypto with low fees. Celsius has been around since 2017 and stated to always have the best interest of the community in mind. My experience so far has been good although I will not stake all my crypto with them...NYKNYC

https://celsiusnetwork.app.link/1046126043

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