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A struggling cryptocurrency lender, Celsius has filed for Chapter 11 bankruptcy in the United States. This means that the user may not be able to recover the funds.
Submission to court Indicated The cryptocurrency lender filed for bankruptcy on July 13.
Celsius CEO Alex Mashinsky Said This move aims to regain confidence in the company’s future.
In his words
This is seen as the decisive moment when acting with determination and confidence contributes to the community and strengthens the future of the company.
According to Celsius terms of service,user There is no guarantee that you will get your money back in case of bankruptcy.
One of the conditions for depositors using a Celsius Earn account is that the crypto lender owns the funds throughout the lending process.
This means that in the event of bankruptcy, the funds of customers using Earn accounts may not be recovered.
The condition of people using custody accounts is not very good. The custody account does not provide interest and the user retains ownership of the funds, but the period of use does not guarantee that the user will be able to recover the funds.
It just states that it is impossible to predict the outcome of bankruptcy proceedings, and as a result, “all digital assets may be completely lost.”
However, Celsius has not yet confirmed what the actual movement will be. The company previously said it would restructure rather than liquidate.
The company also claims that it has sufficient funds to repay unsecured creditors, including customers.
and Blog post Announced after the bankruptcy filing, the company explained its goals in the filing in Chapter 11 with examples of other popular companies that had previously filed for bankruptcy.
He said the bankruptcy move was an attempt to “recover activity across the platform, return value to customers, and present plans to offer choices.”
Celsius didn’t reveal how quickly users could get their money back.
Most Celsius customers aren’t happy with the bankruptcy move because they haven’t been able to withdraw for more than a month now.
Celsius is currently confirming bankruptcy. Most users probably won’t get their money back.
The world operates under contracts and agreements. I have a lot of faith in DeFi. Because it provides certainty that the agreement will be respected.
The code is the law and the progress of society.
Aylo (@alpha_pls) July 14, 2022
Members of the crypto community have criticized the company for paying decentralized protocols while freezing users’ funds.
Did Mr. Celsius repay the DeFi loan and deposit money with the customer to protect bankruptcy … https://t.co/hohlUgksaW
Pete (@ProfitFry) July 14, 2022
1 Redditor He has now revealed that he has put his life savings on a company that has lost everything.
About three months ago, while waiting to find a nice apartment to buy for myself, I deposited my savings in Celsius to get a yield. I managed to lose it all.
