Bankrupt cryptocurrency lender Celsius’ lawyers have asserted that the platform’s users gave up rights to the digital coins deposited in the borrow-and-earn programs.
What Happened: At the first bankruptcy hearing on July 18, Celsius legal counsel Kirkland & Ellis stated that customers had transferred their title to coins to Celsius under the e-Terms of Use (“TOUs”).
As such, the team of lawyers, led by Pat Nash, said Celsius is “entitled to use, sell, pledge and rehypothecate those coins.”
“Celsius lawyer just said what should make every Celsius user cringe: All the crypto is safe, Celsius has title to it, and Celsius will keep it for its own benefit until ordered otherwise,” said David. C Silver, founding partner of Silver Miller, in a Twitter thread breaking down the main events of the hearing.
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