FinTech news in Celsius Network category

But the filing deems account holders with the Earn program as unsecured creditors of Celsius, which means their recovery depends on the distributions to unsecured creditors under a Chapter 11 bankruptcy plan. The verdict gives Celsius ownership of the $4.2 billion in cryptocurrency that users deposited into its high-interest Earn program, according to a 45-page filing from the U.S. Bankruptcy Court Southern District of New York on Wednesday. A federal bankruptcy judge ruled cryptocurrencies deposited into interest-bearing accounts at Celsius Network, a now-bankrupt cryptocurrency lending platform, actually belong to the firm – thanks to the fine print. Last month, Celsius fought with customers in court over ownership of deposited funds as it wanted to sell about $18 million worth of stablecoins from Earn accounts to fund its organization.

Celsius Network, one of the world’s largest cryptocurrency lenders, has filed for bankruptcy protection, a month after freezing customer assets in the wake of sharp turbulence in the crypto market that has toppled business models of several firms. The New Jersey-headquartered startup, which was valued at $3.25 billion when it extended its “oversubscribed” Series B \[…\]

The safety and risk of crypto-based financial products are in question this week as Celsius Network, a major crypto lender that lets users make deposits to earn interest and take out loans in crypto, paused withdrawals this week, sending the price of its token tumbling.