Meanwhile in Crypto – Bloomberg

…. “They understand crypto better than anyone,” says David Adler, a lawyer who represents a group of creditors in the Celsius case. “But the problem is translating that into the legal principles that the court has to apply.”

I insist that if you put your money in Celsius then you did not “understand crypto better than anyone”! The very most important thing to understand in finance and economics is that when a person says “either the bank is lying or I am lying,” you must not give him your money! If you spend your time learning cryptography and working through blockchain consensus mechanisms and comparing yields of different DeFi projects, and then some guy is like “hand over your money to me and I promise I’ll give it back with 18% interest, no risk, economic freedom!” and you believe him, then you wasted your time understanding all the other stuff. All financial complexity is a footnote to “don’t hand all your money to some random guy promising high returns.”

Though it will save you time now to understand that if you handed him your money and he lost it and went bankrupt, the bankruptcy court is not going to magically give you back your money. The money is gone! The judge doesn’t have it! It’s not the judge’s fault! What you have is a bankruptcy claim! That’s what happens when you trust random guys with your money! They lose it!

Source: Meanwhile in Crypto – Bloomberg – Bloomberg