Celsius's redemption freeze was equivalent to a tiny bank closing its doors. A typical bank, on the other hand, would provide some type of depositor protection under the supervision of regulators.
Alisha Gee, 38, of Pennsylvania, was one of many affected by the freezing temperatures.
Since 2018, Gee has invested "every single piece" of her paycheques in cryptocurrency, amassing a five-figure total. She has $30,000 in deposits at Celsius, which are part of her total crypto assets, paying her $40-$100 each week in interest, which she believed would help her pay off her mortgage.
Gee received an email from Celsius little over a week ago stating that she was unable to make withdrawals. "I was simply walking back and forth in the dark around 2 a.m.," she said.
"I have faith in the firm," Gee explained. "It hurts to lose $30,000, especially because it was money I could have put towards my home."
Gee stated that she would continue to use Celsius since she was "faithful" to the firm and had never had any issues.
Celsius CEO Alex Mashinsky said on June 15 that the business was "working nonstop," but he didn't say how or when withdrawals will be resumed. On Monday, Celsius stated that its goal was to "stabilise our liquidity and operations."
GUARDRAILS
Some people's passion for cryptocurrency hasn't waned.
"I've witnessed numerous bad market cycles by now, so I'm trying to avoid any knee-jerk reactions," said Sumnesh Salodkar, a 23-year-old Mumbai resident whose crypto holdings are down but still optimistic.
Warnings from regulators throughout the world about the dangers of dabbling in crypto have become reality for others.
Halil Ibrahim Gocer, a 21-year-old from Ankara, Turkey, said his father's $5,000 in cryptocurrency investments had dropped to $600 after he introduced him to it.
"In crypto, knowledge can only go you so far," Gocer explained. "It's all about luck."
Another investor, a 32-year-old Mumbai-based IT professional, claimed he put three-quarters of his money - several hundred dollars - into cryptocurrency. Its value has dropped by 70 percent to 80 percent.
"This is my final cryptocurrency investment," he stated, asking anonymity.
Regulators in nations all over the world have been figuring out how to put in place crypto safeguards that will protect investors and mitigate dangers to the larger economy.
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