Celsius Network Bankruptcy Case Exposes User Crypto Wallets: Nansen Confirms

The Celsius Network Bankruptcy Case Revealed Potential Leakage of User Crypto Wallets

Last year, in the Celsius Network bankruptcy case, a document revealed blockchain info that might have exposed user crypto wallets. According to The Block Research and Nansen, they confirmed this potential leakage and identified over 15,000 Celsius users’ personal wallets, holding various assets, ENS names, NFTs, and decentralized exchange transactions.

Main Breakdowns:

Celsius Network bankruptcy case exposed user crypto wallets
Nansen and The Block Research confirmed the leakage and identified over 15,000 personal wallets
These wallets hold various assets, ENS names, NFTs, and decentralized exchange transactions
About 1,600 personal wallets are connected to Ethereum Name Service domain names
Celsius owes $5.5 billion, but only has $4.3 billion in mostly hard-to-sell assets

Nansen, along with other researchers, filtered out exchange and decentralized wallets, leaving 15,759 possible personal wallets owned by named customers. These wallets currently hold $900 million in cryptocurrency, reaching a peak of $3 billion during Luna’s price surge in April 2022. The judge in the Celsius bankruptcy case decided not to release customer names along with their addresses to protect them from identity theft or personal danger.

Nansen confirmed that the Celsius filing did leak some of their customer’s personal crypto wallets. They also found that about 1,600 personal wallets are connected to Ethereum Name Service domain names, indicating that these wallets likely belong to active individuals in the crypto community. Celsius, which filed for bankruptcy in July 2022, had assets and debts ranging from $1 billion to $10 billion, and owed $5.5 billion (with $4.7 billion from customers) but only had $4.3 billion in mostly illiquid assets.

Hot Take:

The leakage of user crypto wallets in the Celsius Network bankruptcy case highlights the importance of secure storage and privacy measures in the crypto industry. It serves as a reminder for individuals to be cautious and take necessary steps to protect their digital assets. Additionally, the connection between personal wallets and Ethereum Name Service domain names suggests the active involvement of crypto community members in the affected wallets.