After Celsius Bankruptcy, Will Customers Get Their Funds Back?


 Cryptocurrency lending company Celsius reportedly filed for bankruptcy in July following a sudden drastic drop in the crypto market due to a lack of liquidity.

However, investors began to express their anger towards the company following many frauds that caused many of its customers to suffer huge losses.

This follows because thousands of loan holders have $812 million in collateral, but Celsius has failed to return the collateral even though customers have repaid their respective loans.

Following that, the company is trying to think of various alternatives to return funds to its customers who have lost faith in Celsius.

Among his actions is to sell his asset management platform called GK8 to Galaxy Digital so that Celsius has the opportunity to rebuild after the bitter events they faced.

Therefore, the revenue made by Celsius through the following methods should be used to pay legal fees, stressed David Adler, a lawyer at McCarter & English who represents Celsius but unfortunately his company is now bankrupt.

He added that his thinking is still puzzled about who are the eligible individuals who are entitled to receive money from the GK8 results.

The question was raised because Adler was among the group of Celsius borrowers who owned digital assets worth $100 million compared to other individuals who had a value below that.

The entire explanation above is understood to be the same event as the FTX crisis, where the Chief Executive Officer (CEO) of FTX, Sam Bankman-Fried stated that his company was secure and safe but the opposite happened.