Technology

Bankruptcy crypto company seeks to return $50 million to users


Celsius Network, a cryptocurrency lending platform that has filed for bankruptcy, is looking to return some $50 million worth of coins to some of the company’s customers.

Accordingly, the company is petitioning the judges to allow the withdrawal of $50 million worth of cryptocurrency that is “stuck” in custodial accounts on the platform. A full hearing on this request will be held on October 6.

Celsius used to be a popular crypto lending platform. (Image: Getty)

The move is said to further divide the thousands of investors who suffered from the company’s bankruptcy. Celsius said that besides those who want to make a profit who have transferred ownership of crypto assets to the platform, there are also some customers who only store the assets at the company, so they technically retain the rights. ownership with these coins.

On September 1, lawyer Celsius said that the $50 million was only a fraction of the more than $200 million worth of custodial accounts that were stuck. This is because many users moved assets from interest-receiving accounts to custodial accounts shortly before the company announced bankruptcy.

As of July 10, in addition to funds in custodial accounts, other assets on the digital currency lending platform are valued at around $4.2 billion in total.

Celsius Network is the major crypto lending platform in the crypto ecosystem. At its peak, the company had 1.7 million customers and managed $25 billion in assets.

Ngo Vinh (According to Bloomberg)

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