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A big controversy was caused by a new ruling by a bankruptcy judge allowing Celsius networkcredit company cryptocurrenciesaccept as their own investment their clients.
A judge in New York ruled that the company that caused the panic and lost millions of dollars to its investors had ownership of the funds in Earn accounts about 600 thousand users in the amount of 4.2 billion dollars.
controversy
The ruling means that most customers will have a lower priority than customers who have had interest-free accounts and other secured creditors.
Of course, according to Judge Martin Glenn, the company does not have sufficient funds to pay these funds. At the end of December, BeInCrypto reported that Celsius had received several offers to purchase. However, this latest ruling could change the situation.
“The court takes seriously the implications of this decision for ordinary people, many of whom have invested significant savings on the platform. Celsius networkGlenn wrote. “Creditors will be well placed to have a full hearing on the merits of these arguments in the claims settlement process.”
A criminal case has been opened against the founder
On the other hand, Letitia James, New York Attorney General, sued Alex Mashinsky, co-founder and former CEO of the platform, over fraud.
“As a former director, Mashinsky promised to lead investors to financial freedom, but led them to ruin,” the prosecutor said.
“We are taking action on behalf of the thousands of New Yorkers who have been scammed,” he concluded.
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Source: RPP
I am Ben Stock, a passionate and experienced digital journalist working in the news industry. At the Buna Times, I write articles covering technology developments and related topics. I strive to provide reliable information that my readers can trust. My research skills are top-notch, as well as my ability to craft engaging stories on timely topics with clarity and accuracy.