Celsius Network still unclear on how to reimburse people

The embattled cryptocurrency lender is still not clear on who will be entitled to reimbursement and under what conditions.

Bankrupt cryptocurrency lender Celsius Network still owes consumers funds but it remains unclear which account holders will be reimbursed.

In the days leading up to the bankruptcy, Celsius had frozen the accounts of users and asked for more cryptocurrency deposits to service interest payments – even though the accounts had sufficient balance to service the loans.

Since then, there have been a lot of unanswerable questions as to how account holders (and if) they will get any funds.

Actual equity holders are said to take priority over rank-and-file consumers when it comes to having their funds reimbursed.

Celsius did cause a bit of controversy when it suggested that it’s bringing some of its executive back in exchange for an attractive paycheck to steer the company out of trouble. Previously, an independent investigator was appointed to the case with some caveats.

One of the floated ideas is to turn to “substantive consolidation”, which means that all debtors assets will be pooled together. But, for this to happen, a judge would need to be convinced that it’s impossible to verify and track individual transactions.

Meanwhile, creditors are being represented by White & Case, the law firm that was connected to WestCap, which led the Celsius Series B round.

Overall, the Celsius case leaves a lot to be desired. In the meantime, FTX’s boss is already looking to buy out Celsius.

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Written by Barney


Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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