This seems like a good time for a refresher on government protections because there seems to be a lot of confusion about this.
FDIC [1] is a government insurance scheme on depositors' funds (up to a limit) with any FDIC-inssured bank of financial institution in case of insolvency.
SIPC [2] is the equivalent for brokerages and protects your cash holdings and securities.
Coinbase recently gave a warning [3] that crypto assets could be lost in the event of an insolvency. They also said they don't consider that remotely likely. But the point of that disclosure is that crypto is NOT an SIPC-protected asset.
The crypto mantra of "not your keys, not your coins" [4] is showing itself to be true.
I don't know what the outcome will be of anyone who has any assets in Celsius. It sounds like getting them out now may well be impossible but I haven't read this thoroughly so who knows? Maybe it's too late for Celsius account holders.
But I'd strongly advise anyone who holds crypto with any custodian to move it to your own wallet for your own protection.
On Friday, I had the California Franchise Tax Board empty one of my bank accounts without any notice. They graciously left $0.01 in there. I am not a tax dodger, I pay all my taxes and I've never had an issue anything like this in my nearly 50 years on this planet.
They sent me a certified letter to an old address informing me of this the day after they did it. Claiming I owed taxes for a period when I wasn't even living in the country. This is some sort of mistake on their end that my accountant is going to have to sort out this week.
You can laugh at crypto all you want and say 'not your keys, not your coins'... but this event is taking a whole new meaning for me. I agree, Celsius and centralized services are bad, but it isn't like the government is any better. Don't think you're safe with your 4 letter acronyms. It is all fun and games until something like this happens to you.
Luckily they emptied the wrong account (which had little money in it) and I rushed to the bank to empty out the account with most of my money in it. Now I get to deal with the cashflow stress of it all.
California residency is defined by an “intent to return to the state of California”. That intent is decided by the FTB not you.
Living overseas is particularly tricky because they want to see that you’ve established another state in the US with a stronger connection than California. If not, you remain a California resident. Yes, that sounds crazy
The state publishes a brochure with something like 40 criteria used to make the determination. Receiving mail inside the state is one indicator
> “You can check out any time you like, but you can never leave”
Thanks. That's crazy. I was already out of the country for 2 years before the period they are claiming that I owed taxes (and I was even paying taxes while I was gone)!
It isn't about frequency, it is about possibility.
Source for your "more often" comparison though? Certainly people have had their wallets drained because they handed out the keys or stored their stuff on a centralized exchange, but that's not a lot different than a regular theft.
I don't know of anyone who's had a crypto wallet drained by a third party where the wallet was secure.
> I don't know of anyone who's had a crypto wallet drained by a third party where the wallet was secure
This is going back to the rsync v Dropbox discussion.
Yes, those who know all the steps necessary can spin up their own encrypted file sync server. 99.5% of the remaining user base will use Dropbox or some other managed solution.
Same with Coinbase and all the other exchanges. "nOt yOuR kEys" is not a good argument when there are millions going into ads and influencer videos pitching Coinbase as the de facto crypto equivalent to regulated brokerages. On Robinhood, people don't move their funds back to their bank acct after every single transaction and they don't expect to do so in crypto either.
There's a story on the front page of HN right now [0] about a cryptocurrency that decided to enact some form of emergency powers to save itself and is now claiming to reverse said vote. This exact situation can and does happen with crypto.
We will see... I've never had to sue the government before. It seems like an extreme action to have to take after the fact. They also took a $125 'fee' out as well. I get the feeling I won't see that again. Regardless, it has left me shaken. Now, I really don't trust things at all.
On the good side, I did recently win the 4 bogus parking tickets that I've gotten in the last 6 months. So maybe I'll have good luck with this too!
Except for overdraft fees/late payment fees resulting from it, and likely no compensation for other losses resulting from having your money unavailable and for the wasted time.
I gotta ask you, because this has been eating me since I read it. It appears you've been on HN even longer than me, so I trust you know what you're talking about. I left California in 2006 and moved overseas, never established residency in another state, lived outside the country for 12 years before coming back and establishing residency in Oregon. During that time I did file federal taxes, but most of my income fell under the foreign earned income exemption (< $95k when I left). I did pay social security. But I was no longer considering myself a California resident. Are you saying that California is now trying to claw in taxes from people who left the state 16 years ago and earned foreign income, if they didn't immediately establish residence elsewhere in the US? -- FWIW, I did also skate on visas for those 12 years and never established permanent residency in another country, but nonetheless I wasn't living or making money in California, or intending to return there.
My accountant (who is really an EA) sorted it today. She has a special (paid!) phone number that goes direct into the FTB/IRS.
Apparently, they have been having "computer problems" and have been sending out letters to people who don't actually owe any taxes (because I've been f'cking paying my taxes), like me. I'm not her only client that got jacked by this.
I'll be getting a full refund, including fees, in 4-6 weeks.
What sort of details would you like? Like I have to show an anonymous person proof of this? It happened, I'm not f'cking making it up. This isn't some new HN account. Since you saw my other comment on this, you can see that others have replied to say they had similar things happen. I'm not the only one.
Repeating something doesn't make it true ;) I actually do believe that it happened to you, but (maybe this is me coming from Germany) I can't really picture any of the context.
What even is a "franchise board"? I would assume something like a Gewerbeamt (entity to register businesses with)?
Why do they have bank account data of you? How can they repossess property without a court order?
Background: I'm about to make the jump from academia to industry and in case I overestimated the value of my soul may end up in California. So low-key evaluating whether this could affect me too I guess.
But either way, it's still much better than crypto: There are recourses against state actions. At least in functional judicial states (which I guess is also a tautology xD)
> There are recourses against state actions. At least in functional judicial states (which I guess is also a tautology xD)
Unless the police harass you on the street and ~~steal~~confiscate all cash you have on hand aka "civil forfeiture" [1]. There are entire small towns that have set themselves up as essentially legal highway robbers [2], and federal agencies also like to rob people [3].
There's also a Last Week Tonight episode around it [4], it's a bit dated but still relevant.
Here in Germany, we can at least contest seizure orders because we are named the owners of, say, a couple grands in cash... but in the US, the cash itself can be named defendant, which is ridiculous but entirely legal [5].
> What even is a "franchise board"? I would assume something like a Gewerbeamt (entity to register businesses with)? Why do they have bank account data of you? How can they repossess property without a court order?
Franchise board is the California tax agency. Yes, they have bank account tied to a person since that's where they deposit any refunds (or extract any payments they see fit if you don't pay by other mechanism). They'll certainly take money without any court order, they are the tax man and do whatever they want.
The story is very plausible, that's how they operate.
You're trying to apply german logic to american bureaucracy. They don't overlap.
I can relate to your confusion a tiny bit, especially since you want to move here. When I was in Vietnam, a lot of people I interacted with have the dream of moving to America. Unfortunately, they just know what they see in the movies. They don't realize the harsh realities of things like the complexity of paying taxes. In Vietnam, it comes directly from your paycheck and there is VAT. There is no concept of State and Federal level taxes. Even better, you don't need to hire an accountant to do these things for you because if you mess up (and the system is designed to mess you up), it can get a lot more costly. Even with an accountant, it seems I'm not immune.
When I came back to America (not by choice, I got stuck here at the start of covid and VN shut its borders), this is also why I established residency in an income tax free state. I had to get a physical address, drivers license, car registration, etc... it was a lot of work.
My suggestion? If you're going to come here, do more research first.
The IRS gives multiple written notices before taking any actions, including garnishments. It seems highly unlikely that the FTB would escalate without intermediate steps.
As I said above, I received a certified letter to an old address the day after it happened. My friend who lives at the address let me know, so I haven't see the actual letter. It is entirely possible that they sent other letters there and my friend tossed them, but they weren't certified. They also didn't notify my current address.
Nor did they contact my accountant, who I've had for 20 years now and who's address is on file as my primary address for tax related issues.
It is also odd that they pulled the funds from one of my unused accounts that I just kept around for transferring money between the US and Vietnam (Citibank is in both countries and has free < 24 hour transfers) and left my primary bank account (which had the majority of my funds in it) alone.
The taxes they say I owe were during when I was living full time in Vietnam. I was still paying my US taxes during this time as well. This isn't the IRS, it is the FTB. I didn't own a business and I wasn't in California. None of this makes any sense to me.
Did you file a CA tax return? If not, it sounds like they "estimated" one for you based on your past earnings and when you didn't pay it, they seized the funds.
You should be able to sort this out by filing nonresident returns for the years you were absent. If the state wants to contest the return, then you see them in court. Otherwise they have to refund you.
On the advice of my tax advisors, I've made a point of filing nonresident returns for multiple years after moving out of a state (and out of the USA), even if the earned amount is $0 and the owed amount is $0.
This starts the statute of limitations (where applicable) and it puts you into the bucket of "people who have filed tax returns, which we may or may not audit" versus "people who have not filed tax returns, who we may or may not think should have filed a return".
At the point where you stop filing nonresident returns, you ought to make sure you have essentially zero ties to the state. The nonresident returns you filed should have had a mailing address in a different state. Your drivers license should be from a different state (or expired). You should not be registered to vote in the state. You should not have any bank, brokerage, or other financial accounts with an address in the state. If you own a business, it should not be registered as doing business in the state. No one should be 1099'ing you at an address in that state. Anything that the state's tax board can access in their databases should point to you living elsewhere.
[Obligatory disclaimer that I am not a tax attorney and this is not legal advice. Consult your accountant or a competent attorney as your case may dictate.]
> At the point where you stop filing nonresident returns, you ought to make sure you have essentially zero ties to the state. The nonresident returns you filed should have had a mailing address in a different state. Your drivers license should be from a different state (or expired). […]
All of this rigamarole is probably necessary because there have been people in the past that were (tax) residents but tried to argue they were not to get out of paying what they owed. So now all the honest people have to jump through extra hoops because some yahoos in the past tried to 'work' the system.
Just an addition for non tech users. You should NOT hold your own keys, if you are not up to the task. Consider an exchange with a good record instead and within your "legal region". My recommendation would be Kraken or if you are based in Germany bitcoin.de. Both do not have a single incident which was major and have been doing it for years.
The risk that you loose you coins because you are not able to secure your system is higher, then keeping them on an exchange.
Using a hardware wallet is also a risk. You can loose it, forget your pin or store your backup pass phrase in an unsave / unstable location. For example in a excel sheet or WhatsApp text message to yourself.
Yes, very true. However when people forget the passphrase to their wallet and lose access to their funds, suddenly they don't want to be their own bank anymore, they want a name and number to yell at down the phone until it comes back.
I’m reasonably smart, but I still find the idea of managing my own crypto wallets intimidating. I don’t know what I don’t know, and it’s an unforgiving process if you screw up.
5 out of 7 I can do already. Western Union and NFT are the use cases I can see as unique. Although wasn’t there an NFT exchange where I can buy in dollars now?
That’s not to say it should be mutually exclusive, but it’s not unique and probably simpler with hard currencies. And probably more safe guarded as well.
Why not just write it on a piece of paper, and maybe put a copy in a safe if you want to be ultra secure? I've been doing that for nearly a decade without a single issue. Or if you are a bit more technical just an encrypted text file? Even a password manager is more secure than keeping funds in an exchange, compounded with the fact that you still have to securely store the credentials to access that exchange anyway.
> compounded with the fact that you still have to securely store the credentials to access that exchange anyway.
Not entirely correct. For the Kraken account, 2FA is a must AND you will still have to enter a code send to Gmail if you connect with an unknown IP address. Even if the PC would be compromised it is impossible for the attacker to send funds anywhere because for this you have a second 2FA.
If you want to send money to a different account (does not matter if $ / € or ₿) you also have to verify this by E-mail and 2FA code.
My mum is a good example for a no tech person. You can't imagine what I have been through. To even think she would remember after 3 days, where she stored the keys, after 7 days that she needs them at all and finally after 14 days that I have ever told her anything about it.
There are MANY people, where the exchange is the best option. I could go on with other examples, but my mum is a prime example of a non-tech person. For my mum, Internet Explorer is not a browser, but "the button to the internet".
This is a perfect solution fallacy, it's very improbable for the vast majority of burglaries, just don't write "HERE IS MY SEED FOR CRYPTO $$$" on it. An exchange going bankrupt, hacked, or losing access to your account summed up is order of magnitude more probable to happen, even with the piece of paper on your desk without a safe or a text file with the default OS encrypted hard drive.
>My recommendation would be Kraken or if you are based in Germany bitcoin.de.
You should still use Kraken, even if you are in Germany. bitcoin.de is vastly inferiour on many levels. Kraken, Gemini, Bitstamp and Coinbase are OGs and have a strong track record.
True, but since it based in Germany, you can take legal action if something goes wrong. Considering that they have been around for years without any issues, it can't be that bad.
They're not letting customers withdraw limited amounts. They're not letting customers pay to avoid liquidations using frozen assets. You cannot pay collateral using CEL anymore. They're allowing adding collateral to add liquidations, but make a note to review their terms of service, probably hinting at the part that says customers are unsecured creditors and it becomes their money on bankruptcy. Super shady.
The last AMA before the withdrawal freeze was really pushing hard on the idea celsius is in great shape and being attacked by paid FUD'ers with an agenda. It's over for them. Even if they get the funds back, they've broken trust and everyone will withdraw. The only communication you can get will be written by lawyers until bankruptcy proceedings start.
> The last AMA before the withdrawal freeze was really pushing hard on the idea celsius is in great shape and being attacked by paid FUD'ers with an agenda
That's what made me immediately drawdown my remaining balance (well ok I've got $30 in the still - who cares).
Whenever any financial holding group is giving you confidence like that or assurances everything is fine they are telling you they're screwed.
It should never even be a question. Think, say, Chase Bank or HSBC. Nobody even thinks about whether the bank has the liquidity for them to withdraw say $20,000. Once this becomes a subject of discussion, get the hell out immediately
Unfortunately a huge amount of crypto hinges on "disproving FUD", but so often it is true.
There is only one place where FUD is applied where it shouldn't: the FOMO of missing a bullish trend, and this FUD causes people to invest their entire life savings into crypto. I spent some time on a major crypto currency Discord, and the number of people I spoke to who have gone "all in" on crypto is actually astounding. Just no sense of risk aversion.
People fear missing an opportunity to make money far more than they fear losing their money. Guess which happens? Then afterwards they realise the mistake they've made, and the suicide hotline numbers come out...
Crypto projects really managed to kill the word community while pretending to reinvent it. As in “You’re all one big community of people not getting your money back”...
I'd love to be a fly on the wall during the meeting with whatever attorney insisted they shut their traps:
> We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community.
Every high-flying startup and charismatic CEO wants to talk naturally and "with the people" at first, until they learn _why_ established business all talk in bland corp-speak: because talking like real people is fine in good times, but then when shit hits the fan it opens you up to a boatload of liability. Say nothing, admit nothing.
this isnt the only player to basically hit the pause button when things dont go their way in the unregulated crypto market; Solend is playing a similar game as well.
Had this been, say, Robinhood, punishment would be swift and effective. As crypto has no regulatory framework or model by design, you can only place your hope in a benevolent oligarch who capitulates to the definition of the free market he espouses as well as the one he endures.
The more useful part of the regulations aren't the punishments or even the mechanisms for recovering people's money, it's the guiderails to prevent loss of deposits from happening in the first place.
This is still commodity trading. There are rules and they apply. There are being investigated. I think you have a bit of an overestimation how swiftly Robinhood would be hit with anything. Recall it wasn't long ago when Robinhood received the ire of people, because they screwed their risk management (and by screwed I mean they didn't have any) and were unable to continue trading certain volatility securities. And thus, stopped the ability to buy said securities.
What was the punishment it received? A day in front of the Congress shifting blame? I would be a bit more cynic when dealing with these topics.
It seems to that it's still all about BTC. BTC drops, ETH drops as a result, industry suffers a liquidity crisis, stETH depegs, Celsius pauses withdrawals, and here we are? I don't understand all of this too well, so I can definitely be wrong, but I am under the impression that if BTC didn't drop, this DeFi party would still be going strong.
Three Arrow Capital lost hundreds-of-millions of UST during the Lunacoin / UST implosion a month ago. The fallout of that is still being felt. Celsius was related to Three Arrow Capital somehow. Etc. etc.
Honestly, I'm not yet sure how or why BTC is moving with them. But I don't think BTC is the source of this turbulence. I think a whole lot of shitcoins (Luna/UST in particular) was the first peg to fall. There's a direct link of Luna/UST to Three Arrow Capital, and a link from 3AC to Celsius.
The link then extends to stETH, which extends to ETH, which is then correlated to BTC.
IIRC 3ac was also invested in GBTC which is a whole separate barrel of weird - a share issuing entity which holds BTC and issues shares in proportion to holdings. It was supposed to act as a proxy for BTC price.
But due to regulations not going it’s way, it could never sell/redeem the BTC, and now the shares in the entity have collapsed more than Bitcoin has.
GBTC is an entity that has proven the existence of it's BTC. You can see it as future BTC where the future date is undetermined, possibly infinite at the moment.
GBTC being low just means that the stock market thinks BTC is going down for the near future. To the point where it is willing to trade GBTC at a discount to it's book value.
We all know GBTC is good on it's BTC holdings. We just don't know when it's regulators will let them sell and act as a fully functioning ETF.
> If. We don't know 'if'. A BTC black-hole being cheaper than bitcoin is not that surprising.
Your theory doesn't match reality. GBTC was trading at a premium a few months ago.
I personally believe GBTC is just able to predict the future direction of BTC. It is easier, and more convenient, for most people to speculate upon the value of BTC using GBTC. When the market thought it was going up, it bought GBTC at a premium. Now that the market thinks it is going down, it sells GBTC at a discount.
--------
GBTC, as a basket of BTC, is more open and honest than using pseudo-baskets, like MicroStrategy, to speculate upon the price of cryptocurrencies.
The general stock market wants to play speculation games, with GBTC, BITI, MicroStrategy, and maybe even Tesla a little bit (sure there is a car company attached but everyone knows Tesla has a large BTC holding).
Not even that volatile honestly. Regular old stocks and bonds, even whole indices, have the kind of bad run Bitcoin, Ethereum, etc have.
Making nothing out of something happens all the time in business, this wasn't even that. A Bitcoin is still worth an absurd amount of money.
I'd have a lot more respect for this group if they just said "As you must know, anything paying 18% is risky and this risk didn't pay off. The money is gone, you may receive a few pennies in liquidation but we doubt it. Watch this space, we'll have another high risk/high reward gamble for you soon."
Instead they are prolonging the misery for their customers (assuming they aren't about to make everyone whole) and solidifying the idea that this wasn't a risky tech business enabling tech and financial savvy people to gamble but is instead a bank that tried to exist outside of banking regulations.
I entered the comments section to find a post like this. Thanks Dang!)
(I honestly clicked on the link because I thought I was going to read a snarky post about Fahrenheit being the better system. Surprisingly, this is more interesting!)
- Take people's money to form [insert random Crypto bank-like scheme]
- Invest the money into high-risk investments
- If investments don't pay off, declare bankruptcy. You were gambling with someone else's money
- If investments do pay off, you're rich. You just need to return other people's money, but you keep the upside
There are a ton of schemes like this in traditional investing, but limited to scamming "sophisticated investors" or "accredited investors," depending on the scheme. For crypto, it seems like regulation hasn't caught up, and companies scam random consumers.
By "legal enough," I mean legal enough that scammers can convince themselves they won't land in prison.
This is the story of the 1980s S&L crisis in a nutshell. And the 1930s banking crisis and probably a bunch of others. Every generation has to see it once.
Did I miss something in that article? It says they deposited more collateral to avoid a margin call, and supposedly they won’t be called until BTC hits $13k.
There's a theory 'out there' that there's a coordinated effort to damage Celsius due to Celsius' pulling out of a deal, with a group of other crypto enterprises, to work towards saving Terra/Luna during the early stages of the de-pegging (which resulted in the much publicised death spiral of loss of ~$100B of investment).
Celsius pulled out of this deal to 'protect their community'.
In fairness this action did protect both themselves and their community from any large losses due to the Terra/Luna incident, but it appears that other members of the group of crypto enterprises that did sustain larger losses are (understandably?) significantly salty at Celsius for pulling out of said deal.
True or not, a healthy business can sustain a coordinated attack, and if Celsius doesn't survive then it just means they got their risk analysis wrong for such an edge case. Standard business decision fine-line walking between risk and reward falling off the wrong side.
Maybe Celsius were the first one's to realise that attempting to save Terra/Luna was a fool's errand in the first place, or maybe Terra/Luna could have been saved if Celsius hadn't have pulled out. Given what's come out about Do Kwan since, I'd be guessing the former.
They're dead. Pausing during a market when people want to withdraw before they lose everything means a bank run as soon as the withdrawals reopen. They know this, and they know that we know this, and conspiracies like this are from people unwilling to accept the obvious truth: They announced their death when they paused withdrawals, and the jig is up.
Not really disputing that, just mentioning that it may well have been a well coordinated targeted attack. If they're dead, then it was a successful attack, and notice should be taken by all industry players as to whose accurately swinging baseball bats at their perceived enemies / competitors.
Mergers and acquisitions by bankruptcy proceedings and the consolidation of power by the already powerful. Somewhat ironic if that's the case, playing out in the cryptocurrency arena.
Why must it have been an attack? And even so why don't Celcius take responsibility? When 2008 happened did we blame Mr. Burry for his big short or did blame the banks for taking such obscene risks in the first place?
> just mentioning that it may well have been a well coordinated targeted attack
What kind of “attack” are you imagery that made them insolvent (or close enough to it)? They’re not uniquely impacted by any particular crypto crashes, so it’s hard to see how something could have been engineered to take them out.
I can only provide an oversimplified explanation, but the mass-selling of particular assets to which Celsius is over-exposed in order to trigger price dumping and therefore asset liquidations. stETH as the primary vector.
There may also be a Celsius-token short-squeeze being coordinated in order to help Celsius maintain some level of perceived value.
Who knows the reality, but it's interesting in a financial-trickery context.
This, right here folks, exemplifies the weird cultural phenomenon of company fandom that we see so often on the internet. Celsius not only rips people off, but ordinary people then create a dramatic narrative of how that company was actually looking out for them!
It reminds me of the sort of person who believes they share some emotional connection with their favorite celebrity. With delusions like these, is it any wonder how powerful people can get away with so much?
This isn't directed at you, but at whomever made this story up.
Exactly, crypto not only tolerates scammers, it incentivses them. Imagine defending the guys who rugged you. All this tells me is that I too should launch a cryptoscam of my own
The crypto market this cycle was peak evidence of the utter insanity that can happen when there is excess liquidity in the markets. It honestly makes a mockery of "money".
Celsius have their lawyers / attorneys directing their communications due to the issue. Previously, the CEO has held weekly AMA sessions, so it's a sudden, stark change of tack, which speaks volumes as to the seriousness of the issue.
I bought a lot of bitcoins that were locked up in mt gox. The lawsuit has been ongoing in Japan for many years now. Every 6 months or so they say they are just about to pay out the claims.
The crypto community managed to ignore every lesson from 2008 on cascading networks of financial instability. This is a market microstructure built on sand. We are still in the early innings of what the ultimate forced unwind will look like. The core of the 2008 crisis was at least based on housing which has some inherent downside value and could be resolved via the Fed as a liquidity provider of last resort. Crypto libertarians have been angry at the Fed ever since. Well let’s see how fun a liquidity crisis goes as a counterfactual in an environment with no Fed support.
According to many posts here I’m not supposed to ever interact with a centralized entity but I should manage my own wallet and keep my keys printed on paper buried in the backyard. Yeah that sounds like a path to mass use case adoption of cryptocurrency.
The only ones who are going to walk away from this intact are the lawyers who will be litigating the wreckage here for decades. So much of this industry happens in the grey area of the law which was fine when everyone was getting rich. Now you will have an angry bunch of populist bag holder voters looking — fairly or not - to blame someone else for losing the kids’ college fund in some dodgy levered alt coin scheme.
What's the best action a Celcius account holder can do to mitigate risk? I am thinking of taking out a loan with them to at least withdraw out some cash at their expense.
I’d talk to a lawyer. Probably could file an emergency injunction to release your holdings. I assume the large holders are already doing this. They haven’t filed for bankruptcy so it seems something a judge would grant.
How is that your funds are put on hold in the crypto finance? I thought that's what crypto was about..to own your money so that nobody can hold it for various reasons (i.e like PayPal).
People puting funds into custodial wallets deserve to loose it all
FDIC [1] is a government insurance scheme on depositors' funds (up to a limit) with any FDIC-inssured bank of financial institution in case of insolvency.
SIPC [2] is the equivalent for brokerages and protects your cash holdings and securities.
Coinbase recently gave a warning [3] that crypto assets could be lost in the event of an insolvency. They also said they don't consider that remotely likely. But the point of that disclosure is that crypto is NOT an SIPC-protected asset.
The crypto mantra of "not your keys, not your coins" [4] is showing itself to be true.
I don't know what the outcome will be of anyone who has any assets in Celsius. It sounds like getting them out now may well be impossible but I haven't read this thoroughly so who knows? Maybe it's too late for Celsius account holders.
But I'd strongly advise anyone who holds crypto with any custodian to move it to your own wallet for your own protection.
[1]: https://www.fdic.gov/
[2]: https://www.sipc.org/for-investors/introduction
[3]: https://cryptoslate.com/coinbase-bankruptcy-wording-triggers...
[4]: https://medium.com/stakefish/not-your-keys-not-your-coins-fa...