Super scandal in the world of cryptocurrencies. Can anyone trust digital currencies anymore after this?

Opponents of cryptocurrencies will always find an excuse and a reason to hate. But the truth is that sometimes things happen in this world that are downright hilarious. Specifically, another super-scandal of the Celsius project, which leaked 14,000 pages of user data.

Celsius is one of the biggest crypto scandals of all time

In some cases, individuals don't really look out for the reputation of the rest of the community or the technology. This is similar to the Celsius project that resonated through the internet a few months back.

Not long after the Terra Luna crash, Celsius also ran into trouble. Celsius Network $CELUSD, one of the leading cryptocurrency lenders, decided about three months back to stop withdrawals, swaps and transfers between accounts, citing the high volatility of the market at the time. Only, it then ran into further trouble. And now it looks like they are just not looking at the victims and just continuing to fall deeper and deeper into the abyss.

What is Celsius anyway?

Celsius Network is a bankrupt cryptocurrency lending company. Users could deposit a number of digital assets - cryptocurrencies, including bitcoin $BTCUSD and ethereum $ETHUSD- into a Celsius wallet to earn a percentage return, and they could take out loans by providing their cryptocurrencies as collateral. As of May 2022, the company had lent $8 billion to clients and managed nearly $12 billion in assets.

In June 2022, the company became famous when it suspended all transfers and withdrawals indefinitely due to "extreme market conditions ," which led to a sharp drop in the price of bitcoin and other cryptocurrencies. On July 13, 2022, Celsius filed for bankruptcy.

What problem does it have now?

Also, you're wondering, a company that went bankrupt and whose founders allegedly pulled £50 million each out of the company just before it collapsed? It might. And it certainly doesn't cast a good light on crypto per se.

In fact, as part of the bankruptcy proceedings , Celsius released a 14,000 page document listing each user's full name, timestamps and the amount of each deposit/withdrawal/liquidation. As you can understand - this is a horrific and unprecedented invasion of privacy.

This list is online in unprotected PDF form and anyone can search it or even download it.

It carries, of course, an unimaginable number of risks and consequences. A nosy neighbour? A spouse? An employer? You'll find out all about them. Or maybe it can also serve as an absolutely perfect checklist for crypto scammers. The consequences are immeasurable.

Can a person still trust a crypt?

If you understand at least the very basic principles of how cryptocurrencies work, it should be clear to you that yes.

But beware. Crypto itself is still fundamentally sound. However, the problem arises (as it does) in the human factor and the infrastructure around it. This is where there was wrongdoing on several fronts. Early on, simply because of the crypto hype, many users believed in projects that had little to do with crypto itself and security. Furthermore, the founders themselves and the people responsible for Celsius also erred. And now again - when the data was leaked.

This is probably one of the best examples of"not your keys, not your crypto". Simply - if you rely on anyone other than yourself, you are at risk.

There are understandably opinions on the internet advocating that this is a normal part of the process. Unfortunately, leaking a list of transactions in the cryptocurrency world is an absolutely hellish scenario for any digital asset owner. Better to leave the "I'm not at home and I have my dog with me" sign on the open door .

What makes it worse is that the bits that get hurt the most are the ones that have already been hurt once - i.e. the customers.

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.