Back to collectionCelsius Bankruptcy Sharpens Questions About Custody
News about Three Arrows and Voyager had already shaken the market. Celsius formally filed for bankruptcy, bringing a USD 1.2 billion shortfall into view. Another bankruptcy made risk feel immediate and showed why “it's all onchain” could not describe every kind of asset relationship.
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News about Three Arrows and Voyager had already shaken the market. In community conversations about assets, people sometimes mixed up platform risk with game collectibles. The Night Watchman, a longtime member, noticed that newer players hearing the word “bankruptcy” first wanted to understand what kind of exposure they had.
Celsius formally filed for bankruptcy, bringing a USD 1.2 billion shortfall into view. Someone in the group asked how this related to the cards they held. The Night Watchman offered no assurances about any platform. He suggested distinguishing claims against a custodial platform from collectible records members could inspect themselves, then checking the source of each claim.
Another bankruptcy made risk feel immediate and showed why “it's all onchain” could not describe every kind of asset relationship. The Night Watchman planned to collect common questions for members to check. How the Celsius shortfall would be handled, and what individual members faced, remained unsettled.