Celsius Clients File Lawsuit To Get Back $22,500,000 in Crypto Assets From Bankrupt Digital Asset Lender
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  • 2022-09-05
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Summary:A group of Celsius Network custody wallet customers is suing the bankrupt lending platform in an effort to reclaim more than $22.5 million worth of fu

A group of Celsius online escrow wallet customers have filed a lawsuit against the bankrupt borrowing platform to try to retrieve the funds worth 22.5 million US dollars.

In a new lawsuit mentioned on Wednesday, more than 64 account holders of Celsius indicated that they had saved the right to use all the crypto assets in the enterprise's deposit wallet, and therefore had the right to be returned.

The account holder fabricated a lie that Celcius could not use its assets to repay its bankruptcy liabilities.

"In April 2022, the debtor [Celsius] created a sealed 'escrow service', in which customers gave cryptocurrency to the debtor in the 'escrow wallet', but kept the right to use such property."

In June 2022, the debtor froze the cryptocurrency to withdraw all the money from its platform. From that date, since the application processing date, the debtor does not perform all withdrawals of all plans (including escrow services), even if the escrow property - according to the simple language expression requirements of the debtor's terms of use, the right to use the escrow property belongs to the customer from beginning to end. "

On Thursday, Celsius explicitly proposed a resolution to the same bankruptcy people's court, seeking authorization to allow some customers to obtain cryptocurrencies from their custody plans. The hearing system of the resolution is scheduled to be held on October 6.

Celsius network first applied for bankruptcy in the middle and late July. A few weeks ago, the company suspended all customer transactions and withdrawals, mainly because of the extremely fluctuating sales market.

The original ecological token cel of the project fell sharply from US $0.90 to US $0.09. It has been gradually repaired. At the time of writing this report, its change-of-hand price was $1.41.

Since its bankruptcy, this centralized financial investment company has also been subject to class action, accusing it of being a Ponzi scheme.

In addition, the Washington State Department of financial industry protection and independent innovation issued a restriction order on the company's violation of the local bankruptcy law.

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