Celsius has filed lawsuits against thousands of previously platform users in New York courts

Celsius is concentrating on users who withdrew funds within 90 days prior to the collapse. In an effort to combat Celsius, X user medx0 requested that the crypto sector unify.

The crypto community is outraged as the native CEL token makes unexpected gains, as the collapsed crypto lending platform Celsius Network is pursuing legal action against thousands of its former users who withdrew funds prior to the bankruptcy.

One of the defendants disclosed the information on the social media platform X. Conversely, the CEL token has been outperforming the market’s top digital assets.

According to the pseudonymous crypto enthusiast “medx0,” Celsius filed a lawsuit against him seeking to recover his entire net worth. This week, New York courts also prosecuted thousands of additional users. The defendant urged all crypto users to unite and resist Celsius’ actions.

Celsius has filed a lawsuit against users who withdrew funds from the platform within 90 days of its collapse, according to medx0. The firm’s objective is to “recover all of those funds and more” as it is suing for 2024 market rates, not 2022 rates. added medx0:

“They are seeking excessive quantities of money; in essence, they are suing me for my entire net worth, despite the fact that I have committed no offenses.”

The counsel for Celsius have stated that they will allocate the funds to compensate other Celsius users who were impacted by the collapse. However, medx0 has responded that “those individuals will receive fractions of a penny on the dollar.” The crypto enthusiast further stated that the funds will be direct deposited into the “pockets of attorneys.”

It is crucial to acknowledge that Celsius’ reorganization plan was approved in November of last year, and creditors are determined to recoup their funds from the company. OKX, a prominent digital asset trading platform, recognized the CEL token as one of its best performers in an X post in the midst of these events. The altcoin’s substantial price increase was a surprise to crypto devotees, particularly in light of the United States Department of Justice’s allegation against the company for manipulating the CEL token’s price.

The CEL token’s price was alleged to have been artificially inflated by Alexander Mashinsky, the former CEO and founder of Celsius, and other executives. CEL is currently trading at $0.3973, a 153.74% increase from June 2023, according to CoinMarketCap data.

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