Celsius clients ask bankruptcy court to release cryptocurrencies, one client needs funds to “put food on the table” – Bitcoin News

After cryptocurrency lender Celsius filed for bankruptcy protection on July 13, the company recently contacted customers and explained that an employee of one of the company’s suppliers had access to a customer email list. Celsius and that the email addresses have been “passed on to a third party”. Additionally, Celsius clients wrote to the court begging for their crypto assets back as one client claimed he had less than $ 1,000 in the bank and his situation was a terrible emergency to “keep a roof on my family and food on theirs. table.”

Celsius Customers Informed Of Email Breach, Retail Investors Claim “Badly Affected” By Crypto Lender Fallout

It appears that Celsius was contact customers by email and explaining that a customer email list would be transferred to a third party. The email says it was after an employee of one of Celsius’ suppliers accessed the list. History has become a topical conversation on social media, although cryptocurrency lender Celsius says “we do not believe the incident presents high risks to our customers whose email addresses may have been affected.” Of course, many members of the cryptocurrency community have shared the news far and wide TwitterFacebook and Reddit.

This isn’t the first time data from Celsius customers has been breached. Centigrade reported on an “unidentified source he contacted some Celsius customers via unofficial channels” in April 2021. Sources at the time claimed that Celsius customers were being solicited with phishing scams. The latest news on Celsius’s email leak follows the company’s bankruptcy filing when on July 13, “it filed voluntary reorganization petitions under Chapter 11 of the United States Bankruptcy Code to the United States Bankruptcy Court for the Southern District of New York “.

The filing for bankruptcy followed the company’s withdrawal and operational hiatus on June 12 at 10:10 pm (ET). At the time, Celsius announced that it had suspended “all withdrawals, exchanges and transfers between accounts”. Regarding the bankruptcy procedure, Celsius clients have written letters to the court asking to get their crypto assets back in a faster way than the traditional Chapter 11 bankruptcy procedure. One client, a single mother of two daughters, said. that his family’s life was greatly affected.

“My family and I are severely affected by both financial and mental health from bankruptcy and cryptocurrencies locked up. I always check on the app if my cryptocurrencies are still there. I can’t concentrate on my work or sleep, ”the woman wrote in her letter to the bankruptcy court. Before Celsius went bankrupt, Celsius claimed to have around 1.7 million customers. Another Celsius customer claimed he had less than $ 1,000 in his Wells Fargo bank account and the cryptocurrency lender’s bankruptcy hurt him a lot financially. The client pointed out:

This is an EMERGENCY situation, simply to keep a roof on my family and food on their table.

Celsius customer claims he still has “full faith in cryptocurrencies”

The client and many other clients who have written letters to the bankruptcy court want the authorities to release the funds and disperse the cryptocurrencies among the retail clients. In addition to bankruptcy and customer letters, the cryptocurrency lender also faces legal action from former partner Jason Stone, the founder of Keyfi.

While customer letters asked the court to release funds, some Celsius investors noted that although the cryptocurrency lender itself was untrustworthy, they still trusted the crypto ecosystem. “I still have full faith in cryptocurrencies, but I have no confidence in Celsius’ management with the current team,” another Celsius client wrote to the court.

Most of them are probably aware that waiting for a creditor’s distribution from bankruptcy proceedings can be long and cumbersome and can often be fruitless. In addition, creditors must also prove themselves with a document called “proof of credit”. Celsius has provided clients with information on where they can file a creditor claim.

Tag in this story

Bankruptcy Court, Celsius Clients, Celsius Client, Celsius Clients, Celsius Investors, Claims, Creditors, Crypto, Cryptocurrency Lender, Cryptocurrency Lender, Upset Customers, Email Hacking, Email Leak, Food on the Table, Table of the food, funds, Jason Stone, Keyfi, letters to the court, letters to the judge, leaks from third parties, upset customers

What do you think of Celsius’s email leaks and customer letters to the bankruptcy court? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead of Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.

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