One of the initiators, David Little, noted that legal action is receiving full support from affected customers, all of whom signed the pledge letter.
“We grew our group from just a few individuals to almost 400 in a matter of days and have raised $100,000 with basically a group of competent strangers.”
Damaged clients have had to pay for a new lawyer in the hope of getting their money back, as they have lost confidence in Kirkland & Ellis, a law firm representing Celsius. They claim that the law firm is working to protect its profits instead of trying to refund clients.
Attorneys from Kirkland & Ellis, while representing Celsius in the first bankruptcy hearing on July 18, claimed that users gave up legal rights to their crypto assets when they accept the terms of service.
Customers using the Celsius Earn program had transferred the title of their coins to the firm. Consequently, since “Celsius owned the keys, they owned the coins” and were free to use, sell, pledge, and rehypothecate* the coins. Customers earned interest on their deposits but lost control of their assets.
*Rehypothecate is the act of a broker committing to a bank or other lender of securities that have been left to him by a client in escrow with him as a pledge for their margin purchase.
Attorney David Silver commented in a tweet:
In the case of customers using the Custody program, they still have title to their assets but do not receive interest. The company states that keeping a custodial account does not guarantee that users will be able to recover their funds in the face of bankruptcy.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…
There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…
Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…
George Town, Grand Cayman, 22nd November 2024, Chainwire
Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…
Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…
This website uses cookies.