Re:Crypto Platform Celsius Pauses Withdrawals
by tatertots1234 on Monday June 13, 2022 @04:41AM
(#31722798)
Regulated banks tend to have protections in place that avoid the possibility of users losing their funds.
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Their "protections" are FDIC, which is basically a government insurance fund. With regards to Celsius, we don't know if they lost user funds, or if they are having a liquidity crisis. There's more detail here [0], but I think it's certainly possible that they do have user funds and simply cannot handle withdrawals for the majority of their user base all at once despite having the funds (much like a bank).