Censius submit a PDF file containing details of its customers to the court for its insolvency case

Anonymity has been a major thing in the crypto space that most crypto investors don't want to play with since it enables them to securely invest in any cryptocurrency with any amount of money without anyone knowing who owns the portfolio from the wallet addresses. But it seems the opposite will be the case for those who have had any investment or something to do with Censius, as the insolvent platform has submitted a PDF file of the names of all its customers with all the transactions they have ever done with the platform to the court over its case of insolvency.

The PDF file submitted to the court contains the names, wallet addresses, and all the transactions done by each customer. The file database could also be linked to every customer's private details such as birthdate, name, residential address, email address, phone number, and so on. According to reports, this document is essentially a list of all the investors, which are now presented before a legal court after the platform went bankrupt weeks ago.

Even though those names may not have any issue with the law for investing in cryptocurrency, Censius has exposed its customers to some danger in the crypto space through this action. One thing to know about most of these cefi or leverage scheme platforms is that they don't allow their customers to change wallet addresses. The first obvious implication for this is that criminals and scammers can easily know which person's address still have crypto on the balances connected to their names.

Besides being exposed to scammers, there could also be cases of identity thief where fraudsters could use the names of real people with the addresses that did transactions with Censius for their fraudulent activities. This could put the families of these people in danger and the police would likely start to search for people with the same name as a fraud victims.

Also, it could lead to cases of personal attacks on these people with a number of their friends and even anonymous people in the crypto space questioning their activities whenever they did anything with their wallet addresses. People can easily monitor anything they do and can call them with their phone numbers to threaten them whenever they send crypto like BTC to an exchange.

This is a serious risk in the crypto space which might scare off those who may be considering investing in digital currencies like Bitcoin.

Basically, in many cases, most of these platforms come under the section of Ponzi schemes, and as a default though, no investor should ever give their real name to any cefi or leverage cryptocurrency platform, but the strict KYC rules used by these platforms leaves investors with no other option but to provide their addresses or even their real names if they want to use their services.

The case of Censius would only be the first step of many for investors. I would not be surprised if we hear of many more platforms that would be using shady practices like this in the days to come, as KYC compliance remains a major issue for most of the small to medium-scale platforms in the cryptocurrency space, as they prefer to do little or nothing to control the ecosystem that they are building on.

For those who have ever used the Censius platform even before they went bankrupt, and the accounts were not deleted or closed, this is a piece of information for you. Your name and identity are now in the public domain including the wallet address you used to do business with Censius. While many are yet to realize the danger of it, one thing is clear - Censius has just exposed a lot of their customers to a huge risk in the cryptocurrency space that most of them had not expected. They might want to change their names right now before it is too late.

It would be safe to say that most users of Censius do not belong to the 'crypto' side of the market as a whole, but they were probably lured in by some cheap services like getting a higher return for their lending or savings using their products. What they were never aware of is that a lot of their funds could end up being lost, most of whom do not even use cryptocurrencies but just were looking for a better return for their funds.

In conclusion, we cannot say that the risk of misuse was completely not intended by the founders of Censius. However, I would still agree that when you are in charge of an unregulated environment and more than 30 people lose their entire savings because of your actions, it takes a lot of responsibility to be able to respond to it in a way that might be able to minimize the amount of harm you caused to the victims, especially those that are completely in the dark.

While the Censius case remains a suit in which no one knows what the outcome would be, people should learn some lessons from the event, and stay away from similar platforms in the future.

You should avoid investing in any platform that asks for your real name or your real address, and always remember that if you choose to invest in crypto investment, even if the platform promises you high returns, it does not mean that you should be working with them. Always remember that you might lose all of your money in the end.

For more information about this issue, go to the Censius lawyer's site from the link above, and locate file 973 (See page 34)

https://cases.stretto.com/celsius/court-docket/