Paxful CEO: Users Losing Money By Celsius Earn Will Be Refunded
Key Points:
- Paxful CEO announced that it would reimburse their users who have lost money with Celsius Earn.
- This weekend, users’ Celsius will be available in their Paxful wallet.
- Paxful compensates users with their funds as the Court ruled that the Celsius Earn account belongs to Celsius’ bankruptcy property, not its users.
In the latest announcement by, Ray Youssef, CEO and co-founder of Bitcoin P2P marketplace Paxful, said on Twitter that he promised to reimburse Paxful users who lost money with Celsius Earn.
“They kept holding out hope that users may be credited but the fine print made it clear that only their direct users had that chance not those coming in from other cos like Paxful. No way they are going to do right thing for folks from the Global South. We had to step up.”
The announcement says that users’ Celsius coins will be available in their Paxful wallets later this week.
Paxful Earn is launched in partnership with Celsius. It gives the platform’s customers the opportunity to receive interest on their bitcoins. However, when Celsius crashed in the summer of 2022, they were unable to withdraw funds from the platform. As a result, 600,000 profitable accounts can no longer access their funds.
This was done with the company’s own money as the Court ruled that the Celsius Earn account belonged to Celsius’ bankruptcy assets, not its users. According to the Court’s decision, only direct users of Celsius can receive compensation, not those coming in from other cos like them.
Although not satisfied with this ruling, prioritizing users’ interests and correcting mistakes in cooperation, the company has made this decision. The peer-to-peer platform has announced that it will return nearly 9 BTC worth around $250,000 to Paxful Earn users.
Celsius filed for Chapter 11 bankruptcy in the United States on July 14, leaving thousands of depositors locked up on the crypto lending platform. At the time, neither the company nor its CEO, Alex Mashinsky, had commented publicly on whether depositors could expect any percentage of their funds. According to the bankruptcy filing, user deposits comprise most of Celsius’ liabilities, at $4.72 billion.
The bankruptcy proceedings for Celsius are still ongoing. Recently, a settlement plan was approved between a committee of unsecured creditors and a group of account holders, allowing them to recover 72.5% of their crypto holdings.
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 us to keep track of news: https://linktr.ee/coincu
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Paxful CEO: Users Losing Money By Celsius Earn Will Be Refunded
Key Points:
- Paxful CEO announced that it would reimburse their users who have lost money with Celsius Earn.
- This weekend, users’ Celsius will be available in their Paxful wallet.
- Paxful compensates users with their funds as the Court ruled that the Celsius Earn account belongs to Celsius’ bankruptcy property, not its users.
In the latest announcement by, Ray Youssef, CEO and co-founder of Bitcoin P2P marketplace Paxful, said on Twitter that he promised to reimburse Paxful users who lost money with Celsius Earn.
“They kept holding out hope that users may be credited but the fine print made it clear that only their direct users had that chance not those coming in from other cos like Paxful. No way they are going to do right thing for folks from the Global South. We had to step up.”
The announcement says that users’ Celsius coins will be available in their Paxful wallets later this week.
Paxful Earn is launched in partnership with Celsius. It gives the platform’s customers the opportunity to receive interest on their bitcoins. However, when Celsius crashed in the summer of 2022, they were unable to withdraw funds from the platform. As a result, 600,000 profitable accounts can no longer access their funds.
This was done with the company’s own money as the Court ruled that the Celsius Earn account belonged to Celsius’ bankruptcy assets, not its users. According to the Court’s decision, only direct users of Celsius can receive compensation, not those coming in from other cos like them.
Although not satisfied with this ruling, prioritizing users’ interests and correcting mistakes in cooperation, the company has made this decision. The peer-to-peer platform has announced that it will return nearly 9 BTC worth around $250,000 to Paxful Earn users.
Celsius filed for Chapter 11 bankruptcy in the United States on July 14, leaving thousands of depositors locked up on the crypto lending platform. At the time, neither the company nor its CEO, Alex Mashinsky, had commented publicly on whether depositors could expect any percentage of their funds. According to the bankruptcy filing, user deposits comprise most of Celsius’ liabilities, at $4.72 billion.
The bankruptcy proceedings for Celsius are still ongoing. Recently, a settlement plan was approved between a committee of unsecured creditors and a group of account holders, allowing them to recover 72.5% of their crypto holdings.
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 us to keep track of news: https://linktr.ee/coincu
Foxy
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