Jasmine
VIP Contributor
Celsius Network, a so called crypto bank, has gone bankrupt amidst crypto bearish run. It tried to keep afloat by withholding loan service and withdrawal service but it couldn’t and finally filed for bankruptcy in the US court.
Celsius is bankrupt, what will happen to the crypto deposited by the users?
If you go by Celsius Network’s claim, the user game up their legal rights to their crypto when they participated in saving and borrowing schemes.
Interestingly, there is a clause under Earn program where it is clearly mentioned that by transferring coins ”Celsius is entitled to use, sell, pledge, and rehypothecate these coins”
The same clause is also mentioned under borrow agreement.
Only under custody program, Celsius forfeited the rights to sell or use cryptos deposited by the users.
This claim that except the cryptos under custody program, all belongs to the firm has been made in the court.
Celsius has 1.7 million registered users.
If you are still using services like Celsius, read the TOS carefully.
Celsius is bankrupt, what will happen to the crypto deposited by the users?
If you go by Celsius Network’s claim, the user game up their legal rights to their crypto when they participated in saving and borrowing schemes.
Interestingly, there is a clause under Earn program where it is clearly mentioned that by transferring coins ”Celsius is entitled to use, sell, pledge, and rehypothecate these coins”
The same clause is also mentioned under borrow agreement.
Only under custody program, Celsius forfeited the rights to sell or use cryptos deposited by the users.
This claim that except the cryptos under custody program, all belongs to the firm has been made in the court.
Celsius has 1.7 million registered users.
If you are still using services like Celsius, read the TOS carefully.
