Want to keep exchanges like Celsius from seizing your money? Be a 'custody cl...
Are your coins at risk of being seized by an exchange in the future? Here are some factors to consider related to using centralized exchanges. Disgraced cryptocurrency lender Celsius Network asked a court this month to return assets to its “custody clients,” but not to its “earn-and-borrow” customers. Wondering how to keep yourself in the former group when the crypto exchange you’re using goes under? Here’s a summary.What exactly is a “custody client?” It’s similar in principle to a savings account with a traditional bank — often repayable upon demand by the custodian. In this case, it’s....
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Celsius Network Ltd., the crypto lender that filed for Chapter 11 bankruptcy protection on July 13, is looking to release roughly $50 million worth of crypto assets to Celsius custody account holders. Reportedly, the Celsius custody accounts did not participate in the earn and borrow program. A court hearing concerning the matter of relief will take place on October 6.
Celsius Files Debtors’ Motion to ‘Reopen Withdrawals for Certain Customers’
Court documents show that Celsius is looking to release roughly $50 million in funds to select customers. The....
Suspension of withdrawals on Celsius custody contradicts the plain language of the firm's terms of use, a group of disgruntled creditors argued. The bankrupt cryptocurrency lender Celsius is facing more legal issues as disgruntled clients are taking action to recover their funds after the platform froze withdrawals in June.An ad hoc group of 64 custodial account holders at Celsius on Wednesday filed a complaint with the U.S. Bankruptcy Court for the Southern District of New York in order to recover their assets.According to court documents, the creditors are seeking to recover a total of....
Celsius has motioned for $50 million worth of the total $225 million held in the Custody Program and Withhold Accounts to be released to owners. Beleaguered crypto lender Celsius Network has filed a motion with the United States Bankruptcy Court yesterday to allow customers with digital assets held in certain accounts to be withdrawn. There’s a catch, however, as the motion will only apply to Custody and Withold Accounts and for custodied assets worth $7,575 or less in value. Celsius has structured their Custody and Withhold Accounts, which essentially serve as storage wallets, in a way....
The CEL price rally could fizzle out due to prevailing Celsius issues, including its bankruptcy. The price of CEL soared by nearly 50% as traders assessed its parent firm Celsius Network's inclination to return a portion of the locked funds to its customers.No CEL-ling pressure for nowOn the daily chart, CEL surged to its intraday high of $1.67 per token on Sep. 2 after lows of $1.15 the day before. However, the token's sharp rally accompanied lower trading volumes, suggesting a lack of conviction among traders about further upside moves.CEL/USD daily price chart. Source: TradingViewCEL's....
Between the collapse of Celsius and the FDIC's warning to FTX, consumers should be awakening to the benefits of moving their funds off of centralized exchanges. Searching for more evidence that self-custody of your cryptocurrency holdings beats a centralized manager? Look to the latest action by the Federal Deposit Insurance Corporation (FDIC).The agency sent a letter to FTX Exchange this month — along with four other entities — that included a cease and desist order for “false and misleading statements.” Namely, it accused the exchange of falsely implying that user funds were....