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A group of investors and users from Celsius Network is suing the bankrupt lending platform in an effort to reclaim approximately 22.5 Million USD worth of funds.
In a new lawsuit filed on Wednesday, 64 individual wallet holders of more than 64 accounts with Celsius say they retained the title to all their crypto assets held in Celsius’s custody.
The account holders pointed out saying that Celsius has no rights to use their funds clearing their bankruptcy debts.
The Celsius Timeline
In April 2022, the debtors created a self-acclaimed service where the users entrusted their crypto assets to the debtors in a custody wallet but retained a little.
Later in June, 2022 Celsius as debtors froze all withdrawals of crypto from their platform. Freezing the outbound transactions did not honor any withdrawal from any programs, including custody services. The users reclaimed to have the title of their custody assets as the service terms.
On 1st September, 2022 Celsius filed a lawsuit considering the customers’ consideration. Celsius was seeking an authoritative permit for allowing certain customers to withdraw their cryptocurrency from custody. An headring will be held on October 6th, 2022.
Celsius Network initially filed for bankruptcy back in mid-July, just a few weeks amid the halt on customer transactions and withdrawals, blaming extreme market volatility.
The Celsius’ native token comprehensively collapsed between $0.90 to as low as $0.09. It has currently mounted a recovery and is altering hands for $1.41 at the time of writing.
Celsius the Bankrupt decentralized finance lender is yet again under another lawsuit. This time from the wallet holders though. It is crucial for the crypto lender to release the wallet holder’s funds from the custody at the shortest timeline.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
