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<blockquote style="position: relative; padding-left: 55px;"><section><a href="https://hachyderm.io/users/molly0xfff/statuses/113602854576684220">Molly White (molly0xfff@hachyderm.io)'s status on Friday, 06-Dec-2024 08:39:59 JST</a><a href="https://hachyderm.io/@molly0xfff" title="molly0xfff@hachyderm.io"><img src="https://gnusocial.jp/avatar/34789-48-20230824095227.webp" width="48" height="48" alt="Molly White" style="position: absolute; left: 0; top: 0;">Molly White</a><div><a href="https://hachyderm.io/@molly0xfff/113602836967507402" rel="in-reply-to">in reply to</a></div></section><article><p>As someone who writes a lot about crypto frauds, I see a wide range of reactions to them. One unfortunately common reaction is to blame the victim, dismissing them as crypto degens chasing impossible returns. Reality, as it so often is, is a lot more complicated.</p><p><a href="https://hachyderm.io/tags/crypto" rel="tag">#crypto</a> <a href="https://hachyderm.io/tags/cryptocurrency" rel="tag">#cryptocurrency</a></p></article><footer><a rel="bookmark" href="https://gnusocial.jp/conversation/4131775#notice-8074708">In conversation</a><time datetime="2024-12-06T08:39:59+09:00" title="Friday, 06-Dec-2024 08:39:59 JST">about 2 months ago</time> <span>from <span><a href="https://hachyderm.io/@molly0xfff/113602854576684220" rel="external" title="Sent from hachyderm.io via ActivityPub">hachyderm.io</a></span></span><a href="https://hachyderm.io/@molly0xfff/113602854576684220">permalink</a><h4>Attachments</h4><ol><li><label><a rel="external" href="https://gnusocial.jp/attachment/3639254">As someone who writes a lot about crypto frauds, I see a wide range of reactions to them. One unfortunately common reaction is to blame the victim: to say they were greedy for chasing sometimes unbelievably high returns, or that they should have known the risk, or that they somehow had it coming for choosing to put money into crypto. People commonly stereotype those who hold crypto as archetypical “crypto bros”: young, braggadocious trolls trying to get rich quick by being early enough to a pump-and-dump scheme that they can later tell everyone else to “have fun staying poor” from their superyachts. Reality, as it so often is, is a lot more complicated.Shortly after Celsius declared bankruptcy, Celsius customers began writing letters to the bankruptcy judge, telling their stories and explaining how they came to have money in Celsius, and pleading for him to do everything in his power to return their assets. I was struck by the diversity of the writers: young people to retirees; Americans, Europeans, and people in developing countries; some who started with a ton of money to put into crypto and others who scraped together their portfolios a dollar at a time. Some were financially savvy — the types of people you might expect to have “known better” — others had no idea what they were doing, but were convinced to get into crypto by family or other trusted individuals. Many believed what Celsius and Mashinsky were saying, and that the promises had to be true because US regulato</a></label><br><a href="https://media.hachyderm.io/media_attachments/files/113/602/845/030/632/463/original/d8875e25319a1b71.png" rel="external">https://media.hachyderm.io/media_attachments/files/113/602/845/030/632/463/original/d8875e25319a1b71.png</a></li><li><label><a rel="external" href="https://gnusocial.jp/attachment/3639255">Mashinsky, who engaged directly with customers via weekly video “ask me anything” sessions and even one-on-one phone calls, was viewed more as a trusted friend or financial adviser by many, who really believed him when he said that he wanted everyone to be able to grow wealthy together using his platform, rather than lose money to banks and other financial institutions that he portrayed as the enemy.Some recognized and accepted the volatility risk inherent to cryptocurrencies like bitcoin and ethereum, but didn’t think there was a risk that the cryptocurrencies they owned might disappear entirely.</a></label><br><a href="https://media.hachyderm.io/media_attachments/files/113/602/845/863/751/778/original/8a150fc9b5648ed7.png" rel="external">https://media.hachyderm.io/media_attachments/files/113/602/845/863/751/778/original/8a150fc9b5648ed7.png</a></li><li><label><a rel="external" href="https://gnusocial.jp/attachment/3639256">Others avoided volatile tokens, instead opting to keep their money in dollars or dollar-denominated stablecoins like USDC. They believed their Celsius account was essentially a (very) high yield savings account, and some even believed that it had the same types of protection — including FDIC depository insurance — as traditional banks.I am a retired Dutch citizen. Like many others i never thought of transferring all my pension savings as an investment (as Celsius seems to be calling it suddenly after filing for Chapter 11) but from one savings account to another… Also most of us — elderly; risk avoiding depositers — deposited in stable coins because at our age, one can’t speculate on highly volatile assets such as crypto currencies. Many of us — as we are not able to access our savings — can’t now pay for medium or bigger ‘calamities’ in our households, unless that is why we did set aside our savings for.
Others didn’t make assumptions, but instead relied on Mashinsky’s own promises that the company held a $750 million insurance policy for its deposits, and that it didn’t engage in unsecured lending — both of which turned out to be lies. They believed Mashinsky when he said it was impossible for customers to lose their deposits.Much of my life’s savings are currently held hostage on the Celsius platform. Alex Mashinsky week after week promised the community that our funds were safe and not being used in any risky lending. Every week during his AMA’s he promised that Celsi</a></label><br><a href="https://media.hachyderm.io/media_attachments/files/113/602/850/280/588/423/original/6e733e23d3bebeb4.png" rel="external">https://media.hachyderm.io/media_attachments/files/113/602/850/280/588/423/original/6e733e23d3bebeb4.png</a></li></ol></footer></blockquote>

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Molly White (molly0xfff@hachyderm.io)'s status on Friday, 06-Dec-2024 08:39:59 JST Molly White
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As someone who writes a lot about crypto frauds, I see a wide range of reactions to them. One unfortunately common reaction is to blame the victim, dismissing them as crypto degens chasing impossible returns. Reality, as it so often is, is a lot more complicated.
#crypto #cryptocurrency
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