@kristofor @pluralistic lol. I see the speedrun to "why financial regulations exist" is still going strong.

@kristofor @pluralistic @daniel

This wasn’t TOS shenanigans. It’s how uninsured bank deposits work. Depositors wouldn’t have expected an 18% return if Celsius was merely a custodian of their property.

The TOS argument is a red herring. It’s not what the bankruptcy judge relied on in determining they’re unsecured creditors

See Matt Levine bloomberg.com/opinion/articles

@pluralistic @kristofor @daniel

Yes indeed. That’s what always happens with shadow banks with no deposit insurance. You expect juicy returns on your deposits, you take the risk the people you deposited your funds with will lose your money speculating. Doesn’t matter what the TOS say - unless there’s some part of the deposit contract that gives you certain preferences, you’re just an unsecured creditor.

And honestly, how else did they expect to get 18% returns?

Sign in to participate in the conversation
Qoto Mastodon

QOTO: Question Others to Teach Ourselves
An inclusive, Academic Freedom, instance
All cultures welcome.
Hate speech and harassment strictly forbidden.