Tag Archives: Celsius Network (CEL)

About a week ago, a settlement was reached between Celsius and Celsius Custody account holders. As a result, the latter group was promised a refund of up to 72.5% – half on the spot and half by the end of the year – provided they signed away their right to further litigation. Earn Users Hung Out to Dry However, the vast majority of users did not have Custody accounts. Owners of Earn accounts were not promised a refund, as the judge agreed that Celsius’s ToS proved that the...

The bankrupt cryptocurrency lending firm Celsius announced the reopening of Distributable Assets in certain Custody Accounts. Following the update, some customers took to social media to reveal being able to withdraw funds for the first time since the lender halted its services last June. The development comes a month after the United States Bankruptcy Court for the Southern District of New York authorized Celsius to reopen withdrawals for certain customers with assets held...

Celsius abandoned its promise of transparency from its start, according to former prosecutor Shoba Pillay who was appointed as an independent examiner by United States Bankruptcy Judge Martin Glenn. In a filing, Pillay stated that the bankrupt crypto firm conducted its business in a starkly different manner than how it marketed itself to its customers in every key respect. The report claimed that Celsius lacked a sufficient risk management function and was unable to track its...

Alex Mashinsky, the co-founder and former CEO of bankrupt cryptocurrency lender Celsius Network has been sued by New York Attorney General Letitia James for allegedly defrauding investors, including more than 26,000 New Yorkers, out of billions of dollars worth of digital assets. In an official press release, the AG alleged that before Celsius’ bankruptcy, Mashinsky repeatedly made false and misleading statements about the company’s safety to persuade investors to deposit...

A federal bankruptcy judge has ruled that crypto-assets deposited in Celsius Network’s “Earn” accounts do not belong to the customers. Instead, the funds in the interest-bearing accounts belong to the bankrupt cryptocurrency lending platform. In a 45-page written decision, Martin Glenn, the chief US bankruptcy judge in the Southern District of New York, determined that Celsius is the owner of the $4.2 billion in crypto-assets. The verdict has set an important precedent that...

Troubled Bitcoin miner Core Scientific will shut down more than 37,000 crypto mining rigs belonging to bankrupt crypto lender Celsius Network as both firms finally reach an agreement in court. Core Scientific, which hosts rigs for Celsius, filed for Chapter 11 bankruptcy in December and had partially blamed the lender for its financial troubles. Both companies have a hosting deal in which the mining firm transfers some energy costs to Celsius. The Legal Fight The two parties...

Cryptocurrency lender Celsius Network said it is preparing to file a motion requesting a deadline extension for users to submit their claims by another month. In its latest update, Celsius stated that the motion is scheduled to be heard by the bankruptcy court on January 10. The deadline will be extended until at least then. “For now, the deadline is extended until the motion is heard by the Court. We will provide further updates on the bar date as they become available.”...

Embattled cryptocurrency exchange Zipmex is all set to be acquired by V Ventures, a subsidiary of Thoresen Thai Agencies Pcl, for $100 million. The venture capital fund is reportedly offering $30 million in cash, and the rest will be paid in crypto tokens. According to Bloomberg, V Ventures will acquire about 90% of Zipmex. The court hearing said crypto received from the agreement will be deployed to gradually unlock customers’ frozen wallets in the platform by early April....

The US Bankruptcy Court of the Southern District of New York approved crypto lender Celsius’ motion for a deadline for customers to file a claim. January 3rd, 2023, has been set as the last date for creditors to file a proof of claim against the bankrupt firm. The filing reads, “The United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) has entered an order (the “Bar Date Order”) establishing 5:00 p.m. prevailing Eastern Time on January...

About four months after commencing voluntary Chapter 11 bankruptcy proceedings, crypto lender Celsius Network is yet to execute the much-talked-about restructuring plan.  The troubled lender has now filed a motion requesting the court’s approval to extend the deadline for the submission of its reorganization plan. Celsius Files for Extension of Exclusivity Period Celsius announced the filing on Thursday via Twitter, stating that the work is complex and requires rigorous...