Celsius Users Beg The Court To Release Crypto They Can Buy Food

Celsius users beg the court to release the frozen crypto with one user even saying that he needs the money to put food on the table so let’s read more today in our latest cryptocurrency news.

After Celsius filed for bankruptcy protection,  the company contacted customers and explained that the employee from the company vendors accessed a list of Celsius client emails and they were transferred to a third party. Also, Celsius users beg the court in their letters to get their funds back as one client even said he had less than $1K in the bank and he is struggling to keep a roof over his head.

It seems that Celsius was contacting customers by email and explained that a list of client emails was transferred to a third party and it also reads that after the employee from one of the Celsius vendors accessed the list. The story became a hot topic on social media with Celsius saying that “we don’t consider the incident to present any high risks to our clients whose email addresses may have been affected” but most in the community disagreed.

This is not the first time that data from Celsius customers was breached. The platform reported an unidentified source that contacted some of the Celsius customers via unofficial channels and the source said that the customers were being solicited with phishing scams. The latest event only shows that the Celsius email leak followed after the bankruptcy registration when it filed voluntary petitions for reorganization under Chapter 11.

The bankruptcy filing came as the company’s withdrawal and operations stopped on June 12 and at that time, Celsius announced that it paused all of the withdrawals and transfers between accounts. As far as the bankruptcy proceedings are concerned, Celsius clients wrote letters to the court and asked to get their assets back in a fast manner. One woman wrote:

“I and my family are severely impacted both in financial and mental health by the bankruptcy and locked up cryptos. I always check the app if my cryptos are still there. I can’t focus on my job or sleep.”

Celsius claimed that it had 1.7 million customers and another oen said that he has less than $1K in his bank account. The customers and clients who wrote letters to the bankruptcy court want the authoriteis to release the funds and to disperse the crypto among the clients. Besides the bankruptcy and the customer letters, the lender faced legal action from Jason Stone a former associate and KeyFi founder.

While the customer’s letters pleaded with the court to release the funds, some investors noted that the lender was unreliable but they did trust the crypto ecosystem:

 “I still have full faith in crypto, but do not have faith in the management of Celsius with the current team.”

Most of them are aware that waiting for creditor distribution from a bankruptcy case can be long and cumbersome but also, but creditors also have to prove themselves with a document dubbed proof of claim.