Lawyers for Celsius Network claim that users have no ownership rights to their crypto

Users' attempts to remove their funds from the platform have been a rollercoaster since Celsius Network prohibited withdrawals, swaps, and transfers last month.



The lending program eventually filed for Chapter 11 bankruptcy this week, following in the footsteps of Voyager, which brought everything to a head.


Users had some hope that they may receive their money back because of this, however recent court documents indicate that this might not be the case.


Recent disclosures of proceedings indicate that Celsius Network might not have its consumers' best interests in mind.


The lending company's bankruptcy attorneys have started to make the case that when consumers deposited their money on the platform, they gave up their legal claim to it.


This occurred on Monday during the first bankruptcy hearing, and the attorneys supported their assertion with references to the Earn and Borrow accounts' terms of service.


The legal representatives contended that since users accepted Celsius Network's Terms of Service, they granted the platform permission to utilize the cryptocurrency however they saw fit.


This included the right to choose whether to sell, use, pledge, or rehypothecate any coins that were placed.


The more than 1.5 million people who have placed their bitcoins on Celsius technically do not own them, if this argument is valid. Due to the language used in the Terms of Service, it is still mostly restricted to the Earn and Borrow accounts.

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