Celsius lawyers claim users relinquished their crypto when they signed up
When asked about the long-term bankruptcy process, Celsius is already controversial over restructuring plans and claims for user funding.
according to Kirkland & EllisA retail user, a law firm representing the company in bankruptcy proceedings, transferred the title to Celsius when signing up for the platform.
Lawyers claim that this provided a platform for rehypothesis using coins and significantly reduced Celsius’s liability for losing customers’ funds.
Celsius key, Celsius coin
The Celsius bankruptcy hearing officially began on July 18, and a long battle for the company’s restructuring began.
In the southern New York district, the same court where Voyager filed its own Chapter 11 bankruptcy, a Celsius lawyer filed a lawsuit in the company, causing considerable controversy.
Celsius’ lawyers, led by law firm Kirkland & Ellis’ Patt Nash, believe that the outcome of the proceedings depends on whether the court decides whether the cryptocurrency owned by Celsius belongs to the platform or the user.
“Are there crypto assets in real estate owned by Celsius? Is the answer to this question different for crypto assets held under custody and acquisition programs? To Celsius to secure institutional and retail loans? What about the transferred crypto assets? ” presentation To the court.
The company provided clear answers to these questions later in the presentation.
In elaborating on the key segments of Celsius’ retail business, Nash pointed out that when customers signed up for the acquisition and borrowing program, they transferred the title to the coin platform.
The Celsius Terms of Service (TOU) outlined that depositing coins in a earning program means that the titles of those coins are transferred to the platform. This allowed the platform to use, sell, pledge, and reassume coins as desired. The same was true for the borrowing program, where users could choose from a variety of loan products based on the loan-to-value ratio (LTV) of the pledged collateral.
The only retail product that allows users to retain coin titles was the custody program launched in April 2022. This program is available to users around the world, including uncertified investors in the United States, and companies only coin according to customer instructions.
