The ‘cryptopocalypse’ shines a light on a murky world that has lost punters billions
Alex Mashinsky sat po-faced in a suit and tie – a stark change from his typical T-shirts emblazoned with “banks are not your friends”. It was the millionaire’s first public appearance since his cryptocurrency company froze the accounts of 1.7m customers in June – and he was watching its bankruptcy hearing last week.
The collapse of Celsius, which was valued at $3bn (£2.5bn) with $25bn in assets, has been described as cryptocurrency’s “Lehman moment”.
Other lenders and exchanges are still grappling with what Mashinsky calls a “cryptopocalypse”, desperately trying to borrow their way out of a market rout that has wiped trillions from the value of digital coins. A string of bankruptcies has shone a light on the murky world of cryptocurrency lending that has so far cost investors billions of pounds.
Has anyone else noticed how news on the cryptocollapse has been strangely muted these last weeks?
