When you deposit Bitcoin on Celsius or BlockFi, you lose both control and ownership. Unlike a bank account where the institution owes you money back, crypto platforms own your assets outright. In bankruptcy, those coins belong to the platform, not you.
I want to understand the counterparty and the legal side. So again, there's control and there's ownership. So if I give my Bitcoin up to Celsius or BlockFi, not only did I give them control, I also gave them ownership, which by the way, the money in your bank is not your money. You've also given up custody and ownership of your money. The bank now owes you the money. The stocks in your brokerage account, you've given up both control and ownership. The brokerage owes you the stocks. They're not owned by you, they're owed to you. Kind of the same thing, but legally it's not. The reason why it's not the same legally is the— is because when BlockFi and Celsius went bankrupt, they were counted as their assets in bankruptcy court, not your assets.
