Celsius has sued thousands of former users of the platform in New York courts.
Celsius is targeting users who withdrew funds within 90 days before the collapse.
X user medx0 asked the crypto sector to unite and fight against Celsius.
Collapsed crypto lending platform Celsius Network is taking legal action against thousands of its former users who withdrew funds before the bankruptcy, sparking outrage in the crypto community as its native CEL token sees unexpected gains.
One of the defendants took to social media platform X to reveal the details. On the other hand, the CEL token has been outperforming leading digital assets in the market.
Pseudonymous crypto enthusiast “medx0” said that Celsius sued him for his entire net worth. Thousands of other users were also sued in New York courts this week. The defendant called on all crypto users to stand united and fight against Celsius’ actions.
Celsius Network has officially sued me and thousands of innocent users in New York courts this week. Every single person & entity in crypto needs to be fighting alongside us against this bs. Because if we lose, it will affect every user of a cex. We are every day people who… pic.twitter.com/sELOszUNwS
— medx (@medx0) July 5, 2024
medx0 confirmed that Celsius is suing users who withdrew funds from the platform within 90 days before its collapse. The firm aims to “claw back all those funds plus more” because it is suing for 2024 market rates, not 2022 rates. medx0 added:
“They are asking for outrageous sums of money, basically my entire net worth is what I’m being sued for, for doing absolutely nothing wrong.”
While the lawyers representing Celsius state that they will use the money to pay other Celsius users who were affected by the collapse, medx0 countered that “those folks will get fractions of a penny on the dollar.” The money will go into the “pockets of lawyers,” the crypto enthusiast added.
It is important to note that Celsius’ reorganization plan was approved in November last year, and creditors are bent on recouping their money from the firm. Amid these events, the CEL token was named one of the top performers by leading digital asset trading platform OKX in an X post. Crypto enthusiasts were shocked by the altcoin’s significant price gain, especially considering the fact that the United States Department of Justice charged the firm with manipulating the CEL token’s price.
Alexander Mashinsky, Celsius founder and former CEO, along with other executives, were accused of artificially inflating the CEL token’s price. As per CoinMarketCap data, CEL is trading at $0.3973, up 153.74% since June 2023.
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