Navigating a Crypto Bankruptcy as a Claim Holder: An interview with Rohit (Celsius)
The cryptocurrency market is known for its wild swings and unpredictable turns, and for investors, it's often a rollercoaster ride. However, what happens when one of your trusted platforms files for bankruptcy? We had the opportunity to sit down with Rohit, and delve into his experiences, emotions, and the path he took to ultimately recover his funds after Celsius filed for bankruptcy.
Initial Reactions: Frustration and Speculation and Information Overload
When Celsius filed for bankruptcy, the news was met with a wave of frustration and sadness. While Rohit didn't have substantial holdings with Celsius, the idea of losing money for seemingly random reasons was disheartening. The situation was compounded by the uncertainty surrounding the bankruptcy, with rampant speculation and differing opinions adding to the confusion.
“When Celsius filed for bankruptcy initial thoughts were a lot of frustrations.” - Rohit
In the immediate aftermath of the bankruptcy filing Rohit found himself immersed in a flurry of emails, communication, and verdict analyses. He, like many others, desperately sought clarity on how the situation would unfold. Initial expectations revolved around the possibility of recovering up to 50% of his assets, contingent on various factors such as asset prices at the time of the bankruptcy. As days turned into weeks, the weight of constantly monitoring updates and communications began to take a toll. Work and life continued, and he made a pivotal decision: to accept that the funds might be lost and reasoned that any eventual recovery would be a bonus, not a lifeline. Rohit went as far as unsubscribing from mailing lists and forums, allowing himself to detach from the constant reminders of the situation.
Discovering the Option to Sell His Claim
Time passed, and curiosity got the better of him after he stumbled upon information suggesting that it was possible to sell his claim against Celsius. Initially, he hesitated, having already come to terms with the potential loss. However, after nearly a year of contemplation, he decided to explore this option further. With a goal of recovering at least 30% of his funds in mind, Rohit saw an ad on Reddit and engaged with Xclaim, a platform specializing in claim sales. A buyer on Xclaim offered the desired 30% rate, prompting him to make the decision to sell.
One key aspect of his decision-making process was trust. Rohit had concerns about the amount they would receive, but he didn't doubt the trustworthiness of the platform or buyer that he engaged with. Logistics, such as the time it would take for funds to transfer and the form of the transfer, were minor concerns that he felt confident would be resolved satisfactorily. Registering on Xclaim turned out to be a straightforward process for Rohit. The platform listed all of his assets tied to the Celsius bankruptcy, with a bidding process that started at 15% and increased over time. After negotiation, he agreed to sell at a 30% rate - the market rate at the time. The subsequent process was efficient, with documentation and fund transfer happening swiftly, taking less than a week.
A Lesson Learned and a Note to Other Claim Sellers
Rohit stated that the funds brought him immense relief. It was a significant amount of money that allowed him to move on from the situation and opportunity to reinvest the recovered funds into Bitcoin, adhering to his initial investment strategy.
Reflecting on the experience, Rohit considered the funds he invested in Celsius as risk capital. He embraced the idea of investing with a long-term perspective and an understanding that losses are a part of the investment landscape. Their decision to reinvest in Bitcoin showed his commitment to the crypto market despite the earlier setback. In conclusion, Rohit highlighted the speed and transparency of Xclaim as key advantages for using the platform to sell his claim.
“If you are looking to sell your claims, Xclaim actually gives out one of the best offers for the claim market and the process is really transparent and really straightforward and really easy. And it's really worth it if you're looking to consider doing a sale of your assets I think explains a good platform to solve.” - Rohit