When theft becomes legal – From block on cryptocurrency withdrawals deposited on Celsius network (CEL), offended customers experience a wait that has turned into a long ordeal. Unfortunately, they have also just been abandoned by justice. In fact, a judge has just ruled that all investors who have deposited their crypto-assets use the program “To gain” from celsius don’t own it!
After freezing their crypto-assets, Celsius clients are dispossessed of them
The program “To gain” (earnings) from the loan service Celsius network unfortunately not being called a “Stealer”, almost all customers have deposited their precious cryptocurrencies there to earn some returns. Unfortunately, the Bitcoin adage that “if you don’t have your private keys, they are not your cryptocurrencies” it has never been like this painfully true.
As CoinDesk specifically reports, the judge Martin Glenof the Bankruptcy Court of the Southern District of New York has in fact established that customers who have deposited their cryptocurrencies with the Celsius Earn service had “transferred control of their assets” to the company of Alex Mashinsky.
“The Court concludes (…) that when crypto-assets (including stablecoins) were deposited in Earn accounts, they became the property of Celsius; and the crypto-assets remaining in Earn accounts at the date of the request have become the property of the debtors’ insolvency proceedings (…). »
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Sell stablecoins of injured clients to fund lawyers
Judge Glenn explains his decision by the fact that Celsius’s liquidity “precipitously sold out”. Alex Mashinsky’s business will soon run out of money to pay his expensive lawyers, or his own employees, always paid rubies on the nail. It would therefore be a question in particular of dive into stablecoins customers, to cover these costs.
Obviously, the ulcer reactions of Celsius users rushed to use social media. Especially when a extra time Celsius was asked by lawyers to allegedly allow clients time to make a complaint. This, while the very large majority of them do not even need, since their own Cryptocurrency holdings have been revealed for all to see in October 2022.
“- We have filed a request for an extension of the “deadline”, which is the deadline within which all customers must file a complaint. (…)”
“- How many former clients have requested this extension? Nobody, I guess. We just want the process to be done and we can move forward, rather than have our money wasted on lawyers and staff doing nothing. »
Normally, these complaints – which therefore must only be made by the (very) rare customers whose holdings would not be correct as posted in October – they were due to finish on January 3, 2023. Unfortunately, this extension request is already there, in factprolonged until 10 January, date of the next hearing on this disastrous bankruptcy. If unfortunately the extension were accepted, the deadline (and the ordeal of waiting for customers) would be extended at least until February 9th 2023. O one month’s salary also guaranteed for all lawyers and employees of Celsius. It’s a lot less coins for injured users.
Disasters and attacks don’t just happen to others! It is best never to entrust the security of your cryptocurrencies to a third party. To sleep peacefully, equip yourself with a Ledger secure hardware wallet, there is something for all budgets. Your security is priceless (commercial link).