Bankruptcy Celsius: The nightmare of customers who find themselves dispossessed of their cryptos by a judge

When theft becomes legal – Since Freezing Cryptocurrency Withdrawals deposited on Celsius network (CEL), aggrieved customers experience a wait that has turned into a long ordeal. Unfortunately they have also just been abandoned by the judiciary. In fact, a judge just ruled that all investors who deposited their crypto assets use the program “Deserve” from centigrade don’t own it!

After their crypto assets are frozen, Celsius customers will have theirs expropriated

The program “Deserve” (Earn) from the lending service Celsius network Unfortunately not labeled as a “stealer”, almost all customers have deposited their valuable cryptocurrencies there in order to earn returns. Unfortunately, the bitcoin adage is that “If you don’t have your private keys, they are not your cryptos” has never been like this painfully true.

As the reports including CoinDesk, the judge Martin Glennof the Bankruptcy Court for the Southern District of New York actually ruled that customers who deposited their cryptos with Celsius’ earn service “transferred control of their assets” to the company of Alex Mashinsky.

“The court concludes (…) that when the crypto assets (including stablecoins) were deposited into the Earn accounts, they became the property of Celsius; and the crypto assets remaining in the Earn accounts at the time of the application became the property of the debtors’ bankruptcy proceedings (…). »

Alex Mashinsly, former head of Celsius

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Sell ​​stablecoins from aggrieved clients to fund lawyers

Judge Glenn based his decision on the fact that Celsius’ liquidity “run out quickly”. Alex Mashinsky’s business will soon run out of money to pay his or her expensive lawyers Employees always paid rubies on the nail. So that would be particularly important Diving into stablecoins customers to cover these costs.

Obviously the ulcerated reactions of Celsius users turned to social media quickly. Especially if a extra time was asked by attorneys for Celsius, allegedly giving clients time to make one claim. This while the very large majority of them don’t even have to, since their Cryptocurrency holdings have been revealed for all to see in October 2022.

“- We have submitted a request to extend the ‘deadline’, which is the deadline by which all customers must file a complaint. (…)”
“- How many ex-customers requested this extension? None I guess. We just want the process to be complete and we can move on instead of seeing our money being wasted on lawyers and staff doing nothing. »

Celsius customers are tired of their cryptos being spent on legal fees.
Twitter account @spiffyman

Normally, these complaints – that is, only from the (very) Rarely Customers whose ownership would be incorrect as published in October – should end on January 3, 2023. Unfortunately, this extension application already contains these, de factoextended until January 10th, date of the next hearing on this disastrous bankruptcy. Unfortunately, if the extension were accepted, the deadline (and the waiting time for customers) would be extended to at least February 9th 2023. Either a monthly salary furthermore guaranteed for all lawyers and employees of Celsius. And so much fewer coins for injured users.

Disasters and hacks don’t just happen to others! It is better never to entrust the security of your cryptocurrencies to a third party. For peace of mind, equip yourself with one ledger secure hardware wallet, there is something for every budget. Your security is priceless (commercial link).

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