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Celsius has become the latest cryptocurrency company to file for bankruptcy as the bear market bites hard.
DoNotPay CEO Joshua Browder told CoinDeskt TV in a recent interview that the company is committed to helping people sue the cryptocurrency lending platform Celsius.
Celsius suspended the platform withdrawal a few weeks ago because of adverse market conditions. The company is currently struggling and has filed for Chapter 11 bankruptcy.
Brouder said the company would help people file a proceeding against Celsius because users couldn’t withdraw their assets for some time.
Mr. Brouder explained that a loophole in Celsius’ Terms of Service (Section 27C) allows private investors to sue the company in small-value courts.
However, billing must be below the $ 10,000 threshold, and Browder believes this loophole will help small investors. He said;
“Small-value court judges may stand on the side of consumers. Mr. Seth believes that he doesn’t really appear in many of these cases … Companies give them a default judgment. It is often more expensive to actually hire a lawyer to defend yourself than to do so. “
Mr. Blauder added that Mr. Celsius has more serious problems than worrying about “if a consumer sues in a local small court in a rural Colorado town for $ 5,000.” He added that it is important to bring the smallest investors to the forefront so that they can be paid faster.
DoNotPay CEO said some investors wrote to the company for help when the Celsius crisis began. He further explained that the court would focus on disclosures that Celsius might not have done.
Mr. Blauder believes Celsius has not disclosed the associated risks and added that his company is currently considering a pending withdrawal initiated before the freeze.
Celsius was one of the major crypto lenders, but is now filing for bankruptcy in the way of Voyager Digital.
