Celsius Faces Class Action Lawsuit Over Crypto in Custody

Troubled cryptocurrency lending firm Celsius Network is facing a class action lawsuit from 64 customers over $22.5 million worth of crypto stored in custody service.

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According to a lawsuit, filed with the US Bankruptcy Court for the Southern District of New York, creditors want to get their crypto back, which was stored in custody, which means that Celsius should have kept these assets separately from its main capital. As per terms of use, Celsius had no right to use assets stored in custody for its purposes. The hearing on the complaint is scheduled on September 1.

US Law Firm Files Class Action Lawsuit Against Celsius Network

Celsius filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July this year. The company says the restructuring will help it “maximize value for all stakeholders.”

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