Retail borrowers who used Celsius Network are arguing that they should get back their crypto assets the bankrupt lender received as collateral for its loans.
Under Celsius’ “Borrow” program, its users were allowed to borrow money from Celsius in return for their cryptocurrency assets as collateral. Celsius, which filed Chapter 11 in July 2022, has kept the collateral.
The collateral is not property of the estate, and “should be returned to the borrowers,” a group of former Celsius users said in a Tuesday filing with the US Bankruptcy Court for the Southern District of New York.
The Borrow program had ...
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