Celsius Network Wins Ownership Rights to Customer Crypto Deposits [A bankruptcy judge rules firm can use $4.2 billion in cryptocurrency deposited with high-interest accounts as it sees fit]

wsj ^ | 1/4/22 | Soma Biswas

[catnipman]

A bankruptcy judge ruled that digital coins deposited in Celsius Network LLC’s interest-bearing accounts belong to the firm, ruling against thousands of customers and deciding a key legal issue in crypto-related insolvencies.

[catnipman]

judge: "all your crypto belong to the thieves who stole it"

because a fool and his crypto are soon parted ...

[catnipman]

full article:

https://archive.ph/R9RWC

[BubbaBasher]

Not your keys, not your crypto!

[systemjim]

Massive theft enabled by our corrupt judicial system.

[blueplum]

thanks, Catnipman

“terms of use—approved by users with the click of a button on their mobile devices”

always, always read the fine print

[ClearCase_guy]

The firm’s lawyers, however, argued the terms of use—approved by users with the click of a button on their mobile devices—granted the ownership rights to Celsius so it could lend, sell, pledge and use the assets for investment purposes.

I'd rather place my money under my mattress. Because then it would be mine and not theirs.

[Roccus]

ICBW, but weren’t they protected by block-chain (something I never understood)

[Pontiac]

Massive theft enabled by our corrupt judicial system.

You can’t blame this one on the courts.

The maxim “Let the buyer beware” still applies.

The court is only enforcing the contract the users of this crypto exchange signed.

If you put your money in one of these things you had better read and understand the user agreement.

[SaveFerris]

But it’s all safe and good! /s

[BobL]

The customers thought they were ‘beating the system’ with uninsured ‘investments’ paying 8%, almost exactly the same scam as Bernie Madoff customers who, essentially, said “I don’t care how you make the money, just give me the returns you’re promising”. Oh well, no more returns...and no more principal, too.

[BobL]

“ICBW, but weren’t they protected by block-chain (something I never understood)”

If they held on to their crypto, then they would be protected, but then no interest (just like holding gold). The problem is that they voluntarily handed it over to Celsius to ‘invest’, so no different than tossing their money into the stock market.

[Pontiac]

My question is “If they still have $4.2 billion in deposits, why are they bankrupt?”

[Candor7]

Anyone who0 puts real currency into crypto is committing financial suicide.

It has become a woke radical non currency.

Your bag of silver is no longer fungible.

WAKE UP YOU ESTUPIDO CRYPTO “INVESTORS”. You would do better gambling in Las Vegas.

[AZJeep]

Kind of like your savings account belonging to the bank?
Pretty crazy?

[dinodino]

Exactly! Leave your crypto on-exchange at your own peril.

[SeeSharp]

My question is “If they still have $4.2 billion in deposits, why are they bankrupt?”

Until this ruling they didn't have clear title to that $4.2 billion.

[SaveFerris]

To pay the lawyers first....?

[Chickensoup]

30% Baby!

[blueplum]

Celsius has an outstanding debt of US$82 million on the Maker protocol. Celsius’ total investments in Maker amount to US$1.8 billion, which led to a loss of US$656.5 million, according to DeFi Explore data
https://finance.yahoo.com/news/celsius-repays-debts-cuts-jobs-043743593.html#:~:text=Celsius%20has%20an%20outstanding%20debt%20of%20US%2482%20million,of%20its%20staff%2C%20Israeli%20media%20outlet%20Calcalist%20reported.

someone else will have to explain what “Maker protocol” is

[Scrambler Bob]

I’d rather place my money under my mattress. Because then it would be mine and not theirs.
= = =

Yeah, but you forgot about the fine print on the mattress tag.