The Last 3 Days Have Had A Significant Impact On LUNA And The Bitcoin Crash.

Credit: medium.com

Celsius, a popular staking and lending platform, paused withdrawals from its platform on June 13. A growing number of users believe Celsius mismanaged its funds following the collapse of the Anchor Protocol on the Terra (LUNA; now LUNC) ecosystem and rumors of its insolvency continue to circulate.

According to allegations, the company ran out of available capital to repay investors who were redeeming positions based on a rumor, but facts follow closely behind the allegations.

Celsius Network has since lawyered up and hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP maybe they will open a door to a great new business plan

An even larger issue emerged on June 14 after crypto venture capital firm Three Arrows Capital (3AC) reportedly lost $31.4 million through tradingon Bitfinex. Furthermore, 3AC was a known investor in Terra, which experienced a 100% crash in late May.
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On Tuesday, it was revealed that 3AC had begun selling assets, including $40 million in Lido Staked Ethereum (stETH). Although unconfirmed, 3AC has been attempting to keep a $264 million Aave loan and a $35 million Compound loan from being liquidated.

3AC was also heavily exposed to Terra. Do Kwon's Luna Foundation Guard (LFG) used 3AC to make another $1.5 billion Bitcoin purchase on May 5 to supplement Terra's stablecoin reserves.

BitMEX confirmed on Friday that it liquidated Three Arrows Capital positions the previous week. To avoid prison time, BitMEX co-founder Benjamin Delo reached a $10 million settlement with the Commodity Futures Trading Commission (CFTC) for failing to "establish, implement, and maintain an Anti-Money Laundering (AML) program."

​Alex Mashinsky took to Twitter this afternoon, speaking publicly for the first time since his company froze withdrawals on Sunday night, to reassure the Celsius community that the company's team is working "nonstop" on the issue and to ask for customers' patience.

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Alex Mashinsky did not say when he hopes or expects Celsius to be operational again.