Thousands of users who used the bankrupt Celsius Network to bet on cryptocurrency are coming together on Telegram and Twitter to recover their assets in bankruptcy, which is a tall order.
Celsius vs Investors
The bankrupt lending firm Celsius Network LLC pulled scores of people over the last five years who were interested in making money by betting on bitcoin. But after a crypto crash pushed the company into bankruptcy this summer, some of the amateur investors found unity around a new goal that is getting that money back.
Almost thousands of Celsius customers are gathering on social media apps such as Telegram and Reddit to analyze legal filings together, pooling funds to pay for lawyers and making YouTube summaries of developments at court hearings. While some investors read up on U.S. bankruptcy law and give translations for non-English speakers and try to engineer their own white-knight rescue deals.
In early September, over 60 of Celsius’ custodial-account holders filed a petition to force the firm to revert back their funds outside of the proceedings. A group of 64 people holds nearly $22.5 million in cryptocurrencies with Celsius’ custody service as per the filing. However it is apart from the Unofficial Committee of Creditors (UCC), which is another organized set of Celsius customers.
As per the filing “The Court made clear at various hearings that if Custody Assets are not property of the estate, such assets should be returned to users. Following discussions with the Debtors and their advisors and the Creditors’ Committee and its advisors, Plaintiff has been unable to obtain return of its Custody Assets, and the Debtors have not lifted the freeze with respect to Plaintiff’s Custody accounts.”
It must be noted that Alex Mashinsky, CEO of Celsius Network recently left the firm on this tuesday.
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