SNEAK PEEK
- Since the crypto lender Celsius filed for Chapter 11 bankruptcy in July, anyone can now easily check how much money some consumers have lost thanks to a new tool.
- Aave, Compound, and MakerDAO all received more than 900 million dollars in debt forgiveness from Celsius.
- The justification for this level of information disclosure or the existence of a court injunction has not yet been made clear by Celsius.
After the problematic crypto lender filed for Chapter 11 bankruptcy in July, a new tool now makes it possible for anybody to see just how much money some users have lost.
By entering their name into the handy search bar, it’s simple to see if they’ve made it onto the dubious “leaderboard” of the biggest losers from the Celsius fiasco.
Celsius announced a halt on withdrawals due to “extreme” market conditions, which prevented individual investors from accessing their money and shook the cryptocurrency market. At the US Bankruptcy Court for the Southern District of New York, The Network has filed for Chapter 11 bankruptcy protection.
The decentralized platforms Aave, Compound, and MakerDAO received more than $900 million in debt repayment from Celsius, according to blockchain data analytics tracker Zapper. The Southern District of New York petition listed Sam Bankman-Fried as one of the principal creditors. He is the co-founder of the crypto millionaire Alameda Research.
The tool likely makes use of the client information that Celsius disclosed in a court filing last week. The paper included information such as client names, crypto wallet IDs, transaction types and amounts, and token types and holdings.
Following the decision, Celsius has experienced substantial blowback. “This Celsius leak may go down as one of the worst breaches of client information ever,” tweeted Nick Hansen, CEO of bitcoin miner Luxor.
By comparing dates and quantities to transaction data, Henry de Valence, the creator of Web3 firm Penumbra Labs, noted that “anyone may now dox all the on-chain activity and addresses of any named celsius user.”
Celsius has not yet justified this level of information disclosure or indicated whether a court order was involved.
In addition, a recent discovery related to the Celsius bankruptcy case has alarmed the cryptocurrency community because a court document exposed more than 14,000 pages of the usernames and trade histories of the company’s clients. The crypto community thinks that there are alternative ways these identities can be doxxed, even though the file does not provide any personal information related to the user’s financial institutions or the customer’s residential address.
