As of the morning of June 17th, 2022, digital assets and crypto deposits held by the cryptocurrency lending platform Celsius Network LLC remain frozen. According to a Celsius Network memo released on their website, “all withdrawals, Swap, and transfers between accounts” are “paused” to allow Celsius to put itself in a better position to honor, over time, its withdrawal obligations. The crypto-lending firm indicated that it has taken these unique measures due to extreme market conditions. For thousands of Celsius Network’s institutional investors as well as individual long-term investor customer deposits, these actions have caused them severe financial harm.
According to news reports citing people familiar with the inner workings of crypto lending platform, they are currently bringing on lawyers with experience with financial restructuring and debt restructuring. Additionally, State securities regulators from at least five states have begun investigations into the crypto platforms freezing of client crypto assets.
These news reports have justifiably spooked investors who have invested billions of dollars in cryptocurrency deposits into the lending firm that had nearly $12 billion dollars of assets under management as of May 17th, 2022. Some of these investors who have been frozen out of their digital assets have begun engaging with attorneys from law firm and discussing their strategic alternatives and potential legal action that may be available against Celsius Network.
Options from investors are limited at this time due to management at the Celsius Network keeping everyone in the dark about their financial stability. The crypto markets remain extremely volatile and legal action against Celsius seems inevitable at this time.
If you have been frozen out of your Celsius Network account and have substantial financial cryptocurrency or other digital assets at risk, don’t delay. Contact the cryptocurrency and Celsius Network lawyers today at Marin and Barrett, Inc. to begin discussing your legal options to recover frozen cryptocurrency assets. We are available 24/7 at (888) 348-2735.