Crypto lender Celsius Network has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, the court filing shows. However, according to the company’s terms and conditions, customers or depositors may not get their money either from deposits or yields.
Customers in Trouble After Celsius Files For Bankruptcy
According to Celsius’ terms and conditions, digital assets may not be recoverable if the company becomes bankrupt, enters liquidation, or is unable to repay its obligations. It says:
“In the event that Celsius becomes bankrupt, enters liquidation or is otherwise unable to repay its obligations, any Eligible Digital Assets used in the Earn Service or as collateral under the Borrow Service may not be recoverable.”
Also, users may not have any legal options or rights over Celsius to recover their funds. However, Celsius will only be questionable to its creditors under any applicable laws. Moreover, the insolvency-related terms hint total loss of any and all digital assets in Celsius accounts and custody wallets.
The crypto lender and its subsidiaries in the bankruptcy filing have disclosed a total of 50 creditors. The last creditor is a customer with $5,588,694. The lack of details on other customers or depositors having limited money remains unknown.
