Celsius customers’ claims over assets in Earn accounts dismissed in New York
Three clients had filed a motion seeking to be declared legal owners of assets on Earn accounts, but the judge upheld a prior ruling that Celsius owns these assets.
Three clients had filed a motion seeking to be declared legal owners of assets on Earn accounts, but the judge upheld a prior ruling that Celsius owns these assets.
Pre-bankruptcy, Celsius held $4.2 billion for 600,000 users in Earn accounts, digital assets which the judge ruled it legally owns and can sell to fund operations.
Among Mashinsky's many sins, chief among them is his promise to prospective investors of high yields with minimal risk reassuring that their digital assets would be "as safe as money in a bank."
The $44 million was held in its custodial accounts, which, according to its Terms and Conditions, wasn’t under its ownership and interest-bearing account holders have been left out to dry.
Customers who fail to file their claims by January 3 may not be eligible for any distribution from the case even as new reports point blame on Celsius custody.
Twitter account Crypto Vinco reported that the latest paperwork filed by Celsius in its bankruptcy proceedings revealed the names, dates, transactions, and amounts of every user on its platform.
Leon was the chief strategy officer and resigned a week after CEO Alex Mashinsky after it was revealed they cashed out millions before freezing withdrawals in May.
Another controversy hits Celsius Network following a media outlet's exposé claiming that chief Alex Mashinsky had withdrawn $10 million from the platform before filing for bankruptcy protection.
Months of speculation ended as Celsius CEO Alex Mashinsky steps down from his post amidst an ongoing probe, which comes at the heels of the arrest of controversial Terra founder Do Kwon.
Facing numerous crossroads, FTX.US President Brett Harrison decides to make a company exit, surprising staffers but not FTX chief SBF who said that his move had been "in the works for a while."
Intense scrutiny awaits Celsius with the U.S. court's approval to hire an examiner to look into its dealings, which comes amid optimism that the company could recover from the brink of bankruptcy.
The Vermont securities regulator has filed a motion in support of appointing an independent examiner in which it tore into Alex Mashinsky’s model at Celsius.