Celsius Clients Beg Bankruptcy Court to Release Crypto, One Customer Needs Funds to ‘Put Food on the Table’ – Bitcoin News

After the crypto lender Celsius filed for bankruptcy protection on July 13, the company recently contacted customers and explained that an employee from one of the firm’s vendors accessed a list of Celsius client emails, and the email addresses were “transferred to a third party.” Furthermore, Celsius customers have written to the court begging to get their crypto assets back as one client said he had less than $1K in the bank and his situation was a dire emergency in order to “keep a roof over my family and food on their table.”

Celsius Customers Informed About an Email Breach, Retail Investors Say They Were ‘Severely Impacted’ by Crypto Lender’s Fallout

Celsius appears to be the new normal contacting customersEmail explaining how a client list was reportedly sent to another party. The email says it was after an employee from one of Celsius’s vendors had accessed the list. It was a true story. topical conversation on social media, even though the crypto lender Celsius says “we do not consider the incident to present any high risks to our clients whose email addresses may have been affected.” Of course, many crypto community members shared the news far and wide across TwitterReddit, Facebook and Facebook

It isn’t the first instance of data breached from Celsius customers. Celsius reported on an “unidentified source has contacted some Celsius customers via unofficial channels” in April 2021. According to sources, the scammers were targeting Celsius customers. The latest news about the Celsius email leak follows the company’s bankruptcy registration when it “filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York” on July 13.

The bankruptcy filing followed the company’s withdrawal and operations pause on June 12, at 10:10 p.m. (ET). At that time, Celsius announced that it paused “all withdrawals, swaps, and transfers between accounts.” As far as the bankruptcy proceedings are concerned, Celsius clients have written letters to the court asking to get their crypto assets back in a quicker manner than the traditional Chapter 11 bankruptcy creditors’ process. One customer, a single mother of two daughters, said that her family’s life was impacted a great deal.

“I and my family are severely impacted both in financial and mental health by the bankruptcy and locked up cryptos. If my cryptos have not been deleted, I check the app regularly. I can’t focus on my job or sleep,” the woman wrote in her letter to the bankruptcy court. Celsius claims that its customers number approximately 1.7million before the bankruptcy. Another Celsius customer said that he had less than $1K in his Wells Fargo bank account, and the crypto lender’s bankruptcy hurt him a great deal financially. He stressed the following:

This is an EMERGENCY situation. It’s to ensure my family has a safe place and healthy food.

One Celsius Customer Says He Still Has ‘Full Faith in Crypto’

Many customers wrote letters to bankruptcy courts requesting that the authorities release funds and distribute crypto to retail clients. Besides the bankruptcy and the customer’s letters, the crypto lender also faces legal action from a former associate Jason Stone, the founder of Keyfi.

Some Celsius investors pointed out that even though the lender was not reliable, they trusted the ecosystem. “I still have full faith in crypto, but do not have faith in the management of Celsius with the current team,” another Celsius client wrote to the court.

They are likely to be aware of the fact that it can take a long time for creditors to receive distribution in bankruptcy cases. Furthermore, creditors also have to prove themselves with a document called a “proof of claim.” Celsius has provided customers with information on where they can file a creditor’s claim.

How do you feel about the Celsius email leaks? What did the customer letter to the bankruptcy judge say? Comment below and let us know how you feel about the subject.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Redman is passionate about Bitcoin and open-source codes. Redman has contributed more than 5700 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.