Dozens of Celsius clients ask US court to recover $22.5M in crypto

The bankrupt cryptocurrency lender Celsius Network is facing more legal issues as disgruntled clients are taking action to recover their funds after the platform froze withdrawals in June. On Wednesday, an ad hoc group of 64 custodial account holders at Celsius filed a complaint with the United States Bankruptcy Court for the Southern District of New York to recover their assets. According to court documents, the creditors seek to recover more than $22.5 million worth of cryptocurrency assets collectively held in Celsius’ custody service. The group is represented by bankruptcy-focused law firm Togut, Segal & Segal. The plaintiffs noted that Celsius has “not honored any withdrawals from any programs,” including custody services. According to the complaint, that contradicts the “plain language of the debtors’ terms of use,” as they provide that title to custody assets “always remains with the user.” According to Celsius’ terms of use, the right to any digital assets in its custody wallet shall “at all times remain” with customers and not be transferred to the company.

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