Timeline of the Decline
June 2021
$8.02
All-Time High - Peak euphoria
May 2022
$1.50
stETH depeg causes liquidity concerns
June 13, 2022
$0.15
Celsius halts all withdrawals
Current
$0.05
Post-collapse trading
What Went Wrong
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Risky DeFi Yield Farming
Celsius invested customer deposits in high-risk DeFi protocols to generate the 18% APY they promised, exposing funds to smart contract risks.
-
stETH Liquidity Crisis
Celsius held large stETH positions that became illiquid when stETH depegged from ETH, preventing them from meeting withdrawal demands.
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Hidden Losses and Mismanagement
Internal documents revealed $100M+ losses from hacks, bad investments, and the 0xb1 wallet controversy that were hidden from depositors.