The bankrupt cryptocurrency lender Celsius is facing more legal issues as disgruntled clients are taking action to recover their funds after the platform froze withdrawals in June.
An ad hoc group of 64 custodial account holders at Celsius on Wednesday filed a complaint with the U.S. Bankruptcy Court for the Southern District of New York in order to recover their assets.
According to court documents, the creditors are seeking to recover a total of more than $22.5 million worth of cryptocurrency assets collectively held in Celsius’ custody service. The ad hoc group is represented by bankruptcy-focused law firm Togut, Segal & Segal.
The plaintiffs noted that Celsius has “not honored any withdrawals from any programs,” including custody services. According to the complaint, that contradicts the “plain language of the debtors’ terms of use” as they provide that title to custody assets “always remains with the user.”
According to Celsius’ terms of use, the right to any digital assets...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...