Big Shock to Shareholders of Cryptocurrency Company Celsius, Bankrupt by US Courts!

US Bankruptcy Judge Martin Glenn on Monday Celsius Network shocked its shareholders.

US Court Denies Claims of Shareholders Claiming Celsius’s Cryptocurrency and Valuable Assets

Judge, company cryptocurrency and rejected requests by shareholders to form a formal committee to lay claim to their most valuable assets.

The decision means Celsius preferred stockholders will have to pay for their own attorneys and advisors during bankruptcy.

Venture capital firm WestCap Management LLC and pension fund Caisse de Depot et Placement du Quebec (CDPQ) are among the company’s shareholders.

Some Celsius shareholders argue that because of Celsius’ corporate structure, they are entitled to value from the mining business and loan portfolio, rather than the company’s customers. Lawyers for Celsius creditors, the majority of whom are customers, disagree.

In a written decision on Monday, Judge Glenn said shareholders did not meet the legal standard required to have their advisors’ bills paid by Celsius. He said investors were already adequately represented and failed to demonstrate that they would likely get their money back at the time of bankruptcy.

Also, public court documents regarding Celsius’s bankruptcy proceedings had exposed the personal data of thousands of customers of the platform.

A large financial disclosure form, released Oct. 5, includes customer names, account balances, timing of transactions, and more.

While this came as a shock to Celsius users, publication of this information is subject to US Bankruptcy Law.

*Not investment advice.