- Celsius users are accused of waiving their crypto asset rights by utilizing the site.
- Around 600,000 accounts were affected by Judge Martin Glen’s ruling.
- The New York attorney general filed a lawsuit against Alex Mashinsky, the creator of Celsius.
Recently, CNL tweeted that a court had declared that Celsius customers have waived their legal rights to their BTC by utilizing the platform. As a result, Celsius is now the owner of all the crypto deposits worth $4.2 billion.
It’s estimated that around 600,000 accounts were affected by the ruling announced by New York’s United States Bankruptcy Judge Martin Glenn. When Celcius filed for bankruptcy in July, the company’s assets were valued at $4.2 billion. Glen went on to claim that the company does not have the money to fully repay such deposits.
However, in the eyes of several customers, Celsius had broken their contract. Glenn, on the other hand, disagreed and wrote that the Court concludes that there was a genuine contract between Celsius and its account holders. Further, he said that Celsius had been clearly and unambiguously handed the rights and ownership of digital assets under the terms of the contract.
As a result of the court’s decision, most Celsius customers will have lesser priority than customers who had non-interest-generating accounts and other protected lenders. Whether or whether Celsius has large unsecured debt is unknown.
Meanwhile, on Thursday the attorney general of New York, Letitia James filed a lawsuit against Alex Mashinsky, the creator of Celsius Network. He alleged that he cheated investors out of billions of dollars in digital currency by hiding the poor health of his now-defunct cryptocurrency lending platform.
According to James’s declaration, Alex Mashinsky misled investors by promising them the road to financial independence but instead guiding them to financial destruction. It is a crime to deceive investors with empty promises.
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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.
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