Celsius Users Express Apprehensions over the Personal Information Disclosed in Bankruptcy Event

Celsius, a crypto-lending venue, submitted a bankruptcy filing on the 13th of July this year. Though the case of the crypto lender takes into account the digital assets, it is liable to abide by the US Bankruptcy Code. After the respective bankruptcy filing, many unusual incidents have taken place. For example, Martin Glenn (the Chief United States Bankruptcy Judge) – is presiding over the case of Celsius – mentioned on the 17th of this month that he would get guidance from the in this situation.

The judge particularly expressed that the courts within the US jurisdiction are not bound by the legal principles that are applicable within the UK. However, he asserted that they may have a persuasive position in dealing with the legal problems that may be caused in the current case. Apart from that, the openly available court transcripts dealing with the bankruptcy proceedings of Celsius have disclosed personal information from several consumers of the venue.

Celsius Discloses Personal Information of Its Consumers Openly

A big financial disclosure form was submitted on 5th October comprising of the consumers’ names, the transfers’ timing, the account balances, and so on. Though the disclosure of such statistics might be shocking for Celsius customers, the issuance of that information is inevitable under the U.S. Bankruptcy Code. The chief legal officer and general counsel at WonderFi Technologies, Adam Garetson, stated that there should be transparency and openness in the bankruptcy proceedings.

Related: Why Celsius Bankrupted?

Though the customers of Celsius are continuously waiting to have decisions made on the behalf of the U.S. Bankruptcy Court, the issuance of personal information has caused extra stress. To add fuel to fire, the respective data was made public recently on the website named Celsiusnetworth.com. On that platform, anyone is permitted to search the Celsius clients by name and see their data including their investments and losses. Apart from that, the website comprises a leaderboard listing the consumers according to their ranks.

Celsiusnetworth.com Publishes the Revealed Information and the Community Reacts

Avnx, the developers of Celsiusnetworth.com, pointed out that the respective data was published as a consequence of the legal activities of Celsius. They further specified that Celsius is responsible for making the data public if someone like it or otherwise. Like many others, a Celsius customer named John Carvalho Jr. revealed that when he saw the open disclosure of his information Crypto Twitter was in chaos. He added that the firm had not told him about the risks involved when he invested in the platform.