Celsius Customers to Battle Investors for Money From Mining Rigs

Oct 24,2022
KingData News: Celsius Network LLC customers will likely have to fight with large investment funds over who gets to cash in on the bankrupt crypto lender’s most valuable assets. Investors including venture capital firm WestCap Management LLC and pension fund Caisse de Depot et Placement du Quebec (CDPQ) believe their equity stakes in Celsius entitle them to value that flows from the company’s crypto mining business and its loan book, among other assets, according to court papers. Customers owed billions of dollars in crypto don’t have claims against those assets, Dennis Dunne of Milbank said on behalf of certain equity holders in a bankruptcy court hearing Thursday.
On June 13, digital asset lending platform Celsius Network announced that it would suspend all withdrawals, swaps and transfers between accounts due to extreme market conditions. On the same day, Etherscan data showed that Celsius transferred a total of approximately 111,815 ETH to FTX over the last three days. This indicator provides a real-time tracking of Celsius' funding crisis.