A U.S. bankruptcy judge ruled on Wednesday that Celsius Network owns most of the cryptocurrency that customers deposited into its online platform, meaning most Celsius customers will be last in line for repayment in the crypto lender’s bankruptcy.

The ruling by U.S. Bankruptcy Judge Martin Glenn in New York affects approximately 600,000 accounts that held assets valued at $4.2 billion when Celsius filed for bankruptcy in July. The company does not have enough funds to fully repay those deposits, Glenn wrote…

Twelve U.S. states and the District of Columbia had objected to Celsius’ bid to claim the digital assets. They argued among other things that it was unclear if customers understood the terms of service and that Celsius was under investigation in several states for violating regulations, which could arguably prevent the company from relying on the terms of use…

Celsius customers may be able to bring fraud or breach of contract claims against the crypto lender, and state regulators may be able to make the case that the account holders’ contracts cannot be enforced because they violated state securities laws, according to the ruling.

Source: Reuters

Free legal advice:

In cases of such magnitude it is important for every victim to join a class action with other victims against the alleged fraudsters and their related companies. This can increase the chance of recovering the lost funds. Seek legal advice from an attorney who specializes in crypto fraud cases. They will be able to advise you on your legal options and help you navigate the process of recovering your funds.

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