Bankrupt cryptocurrency lender Celsius’ lawyers claimed that users of the platform waived rights to digital coins deposited in borrow and earn schemes.
What happened: At the first bankruptcy hearing on July 18, Celsius’ legal counsel Kirkland and Ellis declared that customers had transferred their title to coins to Celsius under the e-Terms of Use (“TOU”).
Thus, the team of lawyers, led by Pat Nashsaid Celsius has “the right to use, sell, pledge and remortgage these coins.”
“Celsius’ lawyer just said what should make every Celsius user cringe: all crypto is safe, Celsius has title to it, and Celsius will keep it for its own benefit until be ordered otherwise,” said David. C Silverfounding partner of Silver Miller, in a Twitter thread breaking down the main hearing events.
7) Next – Celsius addressed custodial accounts. Celsius says a court order is needed because the accounts may not be as titled/described. It was more marketing than truth (*my interpretation).
In other words: Our Terms of Service apply to the users of the platform. It’s our money, not yours. pic.twitter.com/nnYNo20WDB
— David Silver (SILVER MILLER) (@dcsilver) July 18, 2022
11) Celsius says that anyone in the EARN program doesn’t have any crypto of their own (i.e., stop thinking of it as *your* crypto). Celsius is the owner of the crypto assets. Most of Celsius’ assets come from the EARN program and are part of the domain.
— David Silver (SILVER MILLER) (@dcsilver) July 18, 2022
The platform has 1.7 million registered users and over 300,000 active accounts with a balance of over $100,000. The company’s $14.5 billion in cryptocurrency assets under management had fallen to just $1.75 billion by July. Of this amount, approximately $180 million are Celsius deposit accounts – the return of these funds to customers will be determined by the judge’s decision.
“The vast majority of our clients will be interested in getting through this crypto winter, staying crypto for a long time, having the opportunity to realize their recovery through an appreciation of the macro crypto environment,” Celsius’s legal counsel said, according to the Financial Times reporter. Kadhim Shubber tweet.
Price action: The crypto market has seen an increase of 2.72% in the last 24 hours, reclaiming a market capitalization of $1 trillion.
According to data from BenzingaPronative token of Celsius CelsiusCEL/USD was trading at $0.78, down 3.17% in 24 hours. EthereumETH/USD was trading at $1,536, up 8% and BitcoinBTC/USD was trading at $22,000, gaining 2.75% over the same period.
picture by CompanionNeko on Shutterstock
