Another Crypto Investment Firm Shuts Down, Taking Over 55% of Customers' Funds

JustAnotherOldGuy shares a report from KITCO: Midas Investments, the hybrid centralized/decentralized (CeDeFi) cryptocurrency platform, announced Tuesday that they will shut down operations as of Dec. 27 and will deduct 55% from most customer accounts to "balance assets and liabilities." This morning, Midas' CEO shut down his own AMA with customers after less than half an hour. "I am writing to you today with a heavy heart to announce that the Midas platform is closing down," wrote Iakov Levin, CEO of Midas Investments, who also goes by 'Trevor,' in a Dec. 27 blog post. Levin said that in the spring of 2022, the advent of the crypto winter saw Midas' DeFi portfolio lose $50 million of its $250 million market value, or 20%. Then, following the bankruptcy of Celsius on Jul. 13 and FTX on Nov. 11, "the platform experienced over 60% of AUM being withdrawn, creating a large asset deficit" of $63.3 million, based on assets of $51.7 million against liabilities of $115 million in BTC, ETH and stablecoins. "Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform," Levin wrote.

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