Cryptocurrency platform Celsius published confidential data of all its customers — thousands of users are at risk

The bankrupt cryptocurrency lender Celsius Network has published confidential data of all its customers — more than 14,000 pages contain information about every user who used Celsius. The data includes full name, information about all transactions, including deposits, withdrawals, and liquidations.

Celsius published a 14,000-page document detailing every user's full name, linked to timestamp & amount of each deposit/withdrawal/liquidation

This horrific breach of privacy will lead to many robbed & killed

Anything not provably cryptographically private will become public pic.twitter.com/xaLbEeedDe

— foobar/ (@0xfoobar) October 6, 2022

Members of the cryptocurrency community reacted immediately: «This horrible privacy breach will lead to many robberies and murders. Anything that is not cryptographically proven will become public,» wrote a user under the nickname 0xfoobar. From now on, both ordinary users and fraudsters have access to information that should never have been released to the public.

Frank Chaparro, editor of The Block, explained that the publication of confidential Celsius user data was due to a judge’s request, due to an ongoing investigation. According to Chaparro, Celsius representatives filed several motions to prevent the publication of such information, but the judge rejected them.

The situation with Celsius will be another lesson for the entire cryptocurrency community: no matter where crypto investors' funds are stored and no matter what level of privacy protection the platform representatives promise, any information can be made public during bankruptcy proceedings.

As a reminder, back in June, Celsius Network filed for bankruptcy. The cryptocurrency lender owed its customers almost $ 2.85 billion. Experts emphasize that previously, the total amount of digital funds specified in the organization’s bankruptcy claims was only $ 1.2 billion. This may mean that the management concealed real losses and debts, and now it is again providing false information to its depositors.