In another installment of the legal woes of bankrupt crypto lender Celsius Network, court documents submitted as part of the case have been released for public access along with the personal data of thousands of the company’s customers.
The court filing allows anyone to access more than 14,500 pages of information that relates to the financial dealings of Alex Mashinsky, Dan Leon and Nuke Goldstein, the platform’s co-founders, but also the names, wallet IDs, and crypto transactions data of those who had invested their funds with Celsius Network.
Earlier this month, it was reported that Mashinsky, who quit as the company’s CEO in late September, withdrew some $10 million from the now-bankrupt cryptocurrency lender weeks before the business moved to freeze its customers’ accounts on June 12 and shut down its operations. The following month, Celsius Network filed for chapter 11 bankruptcy, leaving behind about $1.2 billion in debts.
The company’s lawyers have motioned the court to redact the personal information of its users, but the request was denied.
Meanwhile, the latest development has triggered a predominantly negative response to the leak across crypto-focused social media. However, some industry observers took a different approach to the issue.
“Customers were lending money to Celcius—not depositing it. Therefore they are creditors who must be listed in the filing,” tweeted user Cliff Van Buren.
“They didn’t make it clear at all. In fact, quite the opposite. They used the word ‘deposit’ in all marketing campaigns. The word ‘lend’ never made an appearance,” user JamSalad offered a different opinion.
The lender’s assets are to be auctioned this month, with the final bid deadline set for October 17. A filing with the U.S. Bankruptcy Court states that, if necessary, the auction will take place on October 20. The cure and sale objection deadlines are scheduled for October 25.