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Celsius Execs Cashed Out $40M in Crypto Before Halting Withdrawals for Customers

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Re: Celsius Execs Cashed Out $40M in Crypto Before Halting Withdrawals for Customers

#21

Post by Nursie »

geophile wrote: post #9

I don't follow crypto, so these are actual questions, not trolling: - If Celsius is a trading platform, how can Celsius itself owe anybody anything? - My naive understanding is that cryptocurrency, being based on blockchain, is a log of universally agreed upon, legitimate transactions. So how can there be a liquidity crisis at all, let alone one in the billions? How is the platform allowing transactions not backed by…

Others have answered about how Celsius got into trouble, as it was not a trading platform, but I'll answer the implied question - if it's all on a blockchain, how can a trading platform have a liquidity crisis?

The answer is - it's not all on the blockchain. The vast majority of transactions involving bitcoin are nowhere near a blockchain, they're all on a database (or similar tech) that the exchange runs. Blockchain transactions only occur on deposit or withdrawl of funds into or out of the exchange. If (as in the case of an entity like Quadriga CX) somebody 'accidentally' removes and loses most of the cryptocurrency, the exchange can continue to operate for quite some time, so long as everyone doesn't try to withdraw at once.

Re: Celsius Execs Cashed Out $40M in Crypto Before Halting Withdrawals for Customers

#23

Post by [deleted] »

jqpabc123 wrote: post #20
toomuchtodo wrote: post #16

Earlier quoted context omitted.

The DOJ is going after folks for front running [edit: better wording: insider trading, thx jcpham2 for pointing out my lazy language] NFTs on Coinbase. This is not a defense (“not real money”). Can’t have it both ways, that they’re digital assets when you want to scam, but it’s play money when you get caught. These people will be charged with a crime, and the government is going to find something that sticks. Securit…

Quoted post unavailable.

[deleted]

Re: Celsius Execs Cashed Out $40M in Crypto Before Halting Withdrawals for Customers

#28

Post by kranke155 »

jqpabc123 wrote: post #18
syntaxing wrote: post #5

Crypto is pretty much speed running our existing financial institutions’ past history.

What it's doing is giving techno nerds a free crash course in government, monetary policy and regulation --- or rather the lack thereof.

Pretty much. Every piece of financial regulation is being justified by crypto scams in record speed.

Re: Celsius Execs Cashed Out $40M in Crypto Before Halting Withdrawals for Customers

#30

Post by Clent »

jqpabc123 wrote: post #20
toomuchtodo wrote: post #16

Earlier quoted context omitted.

The DOJ is going after folks for front running [edit: better wording: insider trading, thx jcpham2 for pointing out my lazy language] NFTs on Coinbase. This is not a defense (“not real money”). Can’t have it both ways, that they’re digital assets when you want to scam, but it’s play money when you get caught. These people will be charged with a crime, and the government is going to find something that sticks. Securit…

Quoted post unavailable.

It's as "funny money" as any other security. Just because you feel they may be "funnier" doesn't affect the laws around selling and trading securities.
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