Angry customers of Celsius demand money back

Last Updated: 2 September 2022

Customers of credit provider Celsius demand their money back immediately. The victims are going to court. The aim is simple: to receive payment beyond the current ongoing cases. The group of 64 people is demanding a total of $22.5 million back from the lending platform.

Celsius was one of the victims of the volatile bitcoin market. In addition to the recent declines, Celsius’ questionable business models also played an important role in its downfall. Customers were promised high interest rates on their savings. In the end, Celsius simply could not pay the bills. This allowed investors to wave goodbye to $439 million.

The group went to the bankruptcy court in New York on Wednesday. They want Celsius to be forced to give access to their money. Celsius froze its withdrawals in June, and till date, no one can access their money. The latter is usually in a complicated bankruptcy procedure. However, if it were up to this group of victims, they would get their money sooner.

Celsius has not yet thrown in the towel. After restructuring, they would like to continue. With what exactly is not clear. The mining branch of the company is still operating, by the way.

Difference

The group of 64 people lawyers for the victims of Celsius cites a difference in the services of Celsius. You have the ‘Earn’ services. Customers receive interest for their bitcoin and tokens. In practice, you then actually lend out your money again.

But Celsius also had a storage service. According to the victims’ lawyers, they should, therefore, simply get their money back. It would not be the property of Celsius but still that of the customers. In the case of ‘Earn,’ the latter is no longer the case; you give the company permission to make off with your money.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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