{"id":266857,"date":"2022-10-10T11:30:25","date_gmt":"2022-10-10T10:30:25","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=266857"},"modified":"2022-10-10T11:19:59","modified_gmt":"2022-10-10T10:19:59","slug":"horrendous-kyc-risks-on-show-as-website-detailing-celsius-users-losses-goes-live","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/horrendous-kyc-risks-on-show-as-website-detailing-celsius-users-losses-goes-live\/","title":{"rendered":"‘Horrendous’ KYC risks on show as website detailing Celsius users’ losses goes live"},"content":{"rendered":"

Angel investor Stephen Cole<\/span><\/span><\/a> labeled a website providing searchable data on Celsius users' losses “a perfectly horrendous illustration of the risks of KYC.”<\/p>\n

CeFi lender Celsius filed for Chapter 11 bankruptcy on July 13<\/a>, following liquidity problems triggered by the Terra ecosystem implosion. It later emerged that the firm was engaged in high-risk trading strategies, resulting in heavy losses.<\/p>\n

As part of its bankruptcy procedure, the firm recently filed a 14,000-page document<\/a> listing creditors' details, including information on its users. The document has since been removed.<\/p>\n

In response, many in the crypto community blasted the move, with some accusing the CeFi lender of intentionally doxing users.<\/p>\n

The outcry has extended to a discussion around the reasonableness of complying with Know Your Customer (KYC) requirements.<\/p>\n

\u00a0U.S. bankruptcy procedures<\/h2>\n

Under Chapter 11 bankruptcy rules, a “Creditor Matrix<\/a>,” or list of creditors' names and addresses, is required for public record. The court uses this to send notices and claims data for an open and transparent bankruptcy process.<\/p>\n

In respect of Celsius users, the document showed names, coin quantity, and coin value, among other details. However, addresses were redacted at the company's request.<\/p>\n

Nonetheless, some pointed out that the information could be cross-referenced with details from the Ledger leak to identify and target specific crypto holders.<\/p>\n

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Celsius x Ledger leaks are great for anyone looking for easy $5 wrench attack targets<\/p>\n

Export 14k pages of names from the Celsius, then match names with 250k names from the Ledger leak<\/p>\n

You now have a full name, address, email, phone number, and financial info of a LOT of people<\/p>\n

— fbslo (@fbsloXBT) October 7, 2022<\/a><\/p><\/blockquote>\n