Celsius Drags Custody Provider To Court Over $17 Million In Crypto

Celsius Network Ltd., the crypto lender that filed for Chapter 11 bankruptcy protection on July 13, is looking to release roughly $50 million worth of crypto assets to Celsius custody account holders. Reportedly, the Celsius custody accounts did not participate in the earn and borrow program. A court hearing concerning the matter of relief will take place on October 6. Celsius Files Debtors’ Motion to ‘Reopen Withdrawals for Certain Customers’ Court documents show that Celsius is looking to release roughly $50 million in funds to select customers. The....

Suspension of withdrawals on Celsius custody contradicts the plain language of the firm's terms of use, a group of disgruntled creditors argued. 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....

Celsius has motioned for $50 million worth of the total $225 million held in the Custody Program and Withhold Accounts to be released to owners. Beleaguered crypto lender Celsius Network has filed a motion with the United States Bankruptcy Court yesterday to allow customers with digital assets held in certain accounts to be withdrawn. There’s a catch, however, as the motion will only apply to Custody and Withold Accounts and for custodied assets worth $7,575 or less in value. Celsius has structured their Custody and Withhold Accounts, which essentially serve as storage wallets, in a way....

The crypto lending firm intends to get the liquidity and support its operations with the funds from the sell-off. Celsius Networks, a crypto lending company that had frozen the withdrawals in June and has been proceeding through Chapter 11 bankruptcy since July, asked the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings. This should let the company generate liquidity to help “fund the Debtors’ operations.”A notice was filed by the Celsius’ legal team from Kirkland & Ellis law firm on Sept. 15, a hearing where the court....

After the crypto lender Celsius filed for bankruptcy protection on July 13, the company recently contacted customers and explained that an employee from one of the firm’s vendors accessed a list of Celsius client emails, and the email addresses were “transferred to a third party.” Furthermore, Celsius customers have written to the court begging to get their crypto assets back as one client said he had less than $1K in the bank and his situation was a dire emergency in order to “keep a roof over my family and food on their table.” Celsius Customers....