Bitcoin News and Finance Celsius Clients Beg Bankruptcy Court to Release Crypto, One Customer Needs Funds to ‘Put Food on the Table’ Skip to main content

Celsius Clients Beg Bankruptcy Court to Release Crypto, One Customer Needs Funds to ‘Put Food on the Table’

Celsius Clients Beg Bankruptcy Court to Release Crypto, One Customer Needs Funds to 'Put Food on the Table'

After the crypto lender Celsius filed for bankruptcy protection on July 13, the company recently contacted customers and explained that an employee from one of the firm’s vendors accessed a list of Celsius client emails, and the email addresses were “transferred to a third party.” Furthermore, Celsius customers have written to the court begging to get their crypto assets back as one client said he had less than $1K in the bank and his situation was a dire emergency in order to “keep a roof over my family and food on their table.”

Celsius Customers Informed About an Email Breach, Retail Investors Say They Were ‘Severely Impacted’ by Crypto Lender’s Fallout

It seems Celsius has been contacting customers by email, and explaining that a list of client emails were reportedly transferred to a third-party. The email says it was after an employee from one of Celsius’s vendors had accessed the list. The story became a topical conversation on social media, even though the crypto lender Celsius says “we do not consider the incident to present any high risks to our clients whose email addresses may have been affected.” Of course, many crypto community members shared the news far and wide across Twitter, Facebook, and Reddit.

Celsius Clients Beg Bankruptcy Court to Release Crypto, One Customer Needs Funds to 'Put Food on the Table'

This is not the first time data stemming from Celsius customers has been breached. Celsius reported on an “unidentified source has contacted some Celsius customers via unofficial channels” in April 2021. Sources at the time said Celsius customers were being solicited with phishing scams. The latest news about the Celsius email leak follows the company’s bankruptcy registration when it “filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York” on July 13.

The bankruptcy filing followed the company’s withdrawal and operations pause on June 12, at 10:10 p.m. (ET). At that time, Celsius announced that it paused “all withdrawals, swaps, and transfers between accounts.” As far as the bankruptcy proceedings are concerned, Celsius clients have written letters to the court asking to get their crypto assets back in a quicker manner than the traditional Chapter 11 bankruptcy creditors’ process. One customer, a single mother of two daughters, said that her family’s life was impacted a great deal.

“I and my family are severely impacted both in financial and mental health by the bankruptcy and locked up cryptos. I always check the app if my cryptos are still there. I can’t focus on my job or sleep,” the woman wrote in her letter to the bankruptcy court. Before Celsius went bankrupt, Celsius claimed that it had roughly 1.7 million customers. Another Celsius customer said that he had less than $1K in his Wells Fargo bank account, and the crypto lender’s bankruptcy hurt him a great deal financially. The customer stressed:

This is an EMERGENCY situation, simply to keep a roof over my family and food on their table.

One Celsius Customer Says He Still Has ‘Full Faith in Crypto’

The customer and many other clients who wrote letters to the bankruptcy court want the authorities to release the funds and disperse the crypto among retail clients. Besides the bankruptcy and the customer’s letters, the crypto lender also faces legal action from a former associate Jason Stone, the founder of Keyfi.

While the customer letters pleaded with the court to release funds, some Celsius investors noted that while the crypto lender itself was unreliable, they still trusted the crypto ecosystem. “I still have full faith in crypto, but do not have faith in the management of Celsius with the current team,” another Celsius client wrote to the court.

Most of them are probably aware that waiting for creditor distribution from a bankruptcy case can be long and cumbersome, and oftentimes can be unfruitful. Furthermore, creditors also have to prove themselves with a document called a “proof of claim.” Celsius has provided customers with information on where they can file a creditor’s claim.

What do you think about the Celsius email leaks and the customer letters to the bankruptcy court? Let us know what you think about this subject in the comments section below.

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory