Celsius Custodial Service Users File Petition To Get Funds Back

Sept 18,2022
Celsius Custodial Service Users File Petition To Get Funds Back
  • The user who applied the Celsius hosting service asked the company to release his funds.
  • 64 people are part of the process, and these people have about 22.5 million US dollars in the depository.
  • Celsius is facing social pressure at this stage, and it has also applied to keyfi.

It seems that Celsius is facing more difficulties because some depository account holders have applied to the bankruptcy court for the return of its funds. More than 60 people in this account holder request to remit the funds outside the judicial process, which adds a lot of work pressure to this company in deep financial difficulties.

The letter of help was submitted to the bankruptcy court of New York City in the South District of New York City on August 31. According to this document, these 64 individuals have about $22.5 million in Celsius' hosting services.

The appellant fabricated a lie that the users of the custody service should be able to receive his funds, so these funds should be stored in different warehouses. This is in turn the profitable commodity funds that other debtors have been looking for. In their view, the company should be able to return such funds and execute the intention of repaying such debtors.

The important argument is that on earn products, users grant "all rights and use rights" to digital currency. However, the filing of custody services shows that:,

"Unlike the earn scheme, the right to use the" stored "digital currency should" belong to [the user] from the beginning to the end. "" it is not easy for Celsius to transfer, sell, borrow or re mortgage the "stored digital currency in various ways, unless it is specially marked by [the user], unless otherwise specified by reasonable court orders, responsible regulatory departments, government departments or law application."

The disaster of Celsius is endless

The dramatic things in the Celsius online game are constantly happening, which adds a lot of pressure to the company. Celsius is trying to maintain its business process according to the mining business, but there will be a lot of things to deal with before it can achieve results. The company spent US $40 million on data encryption and mining equipment, and it is expected to improve the efficiency in January.

Celsius recently claimed that keyfi stole millions of digital currencies, and Jason stone, the CEO of keyfi, stole funds several times. It is adopting laws and regulations against the company and stone to try to retrieve the property.

In addition, there are also reports of recycling, although there is no information yet. The Associated Press reported in August that ripple was interested in recycling the company.