Celsius Network Wins Ownership Rights to Customer Crypto Deposits

Celsius Network Wins Ownership Rights to Customer Crypto Deposits | WSJ archive.is/R9RWC

142 sats \ 8 comments \ @cryptocoin 5 Jan 2023 bitcoin

25 sats \ 0 replies \ @TheBTCManual 5 Jan 2023

A bitter pill to swallow for those customers but if anything its a great advertisement for why self custody is such a revolutionary method of holding your money. They're all learning a valuable lesson, the law will never be on the side of the individual in the fiat system, its on the side of those with the biggest bank roll so why fight them on it? Just move over to bitcoin

25 sats \ 0 replies \ @rolator 5 Jan 2023

shocking... hold your own keys.

25 sats \ 3 replies \ @Rex 5 Jan 2023

The money deposited in the bank is also the bank's. If the bank goes bankrupt, the bank will also give priority to repaying other creditors, not depositors.

0 sats \ 2 replies \ @cryptocoin OP 5 Jan 2023

Well, in many countries there is insurance on traditional bank accounts that guarantee some level of bank account deposits. In the U.S., there is the FDIC:

FDIC deposit insurance covers $250,000 "per depositor, per FDIC-insured bank, per ownership category.

7 best ways to insure excess deposits https://www.bankrate.com/banking/savings/ways-to-insure-excess-deposits/#other

That doesn't mean if your bank becomes insolvent you will immediately have access to the funds you had deposited but it does mean you have that much that is "backed by the full faith and credit of the U.S. government."

At least that's how it is supposed to work. Bank bail-ins are possible at some point and would occur through sneaky means (e.g., where your bank balance is frozen but you can obtain that amount through some digital dollar / CBDC which is not the same as your bank funds).

25 sats \ 1 reply \ @Rex 9 Jan 2023

Your money still belongs to the bank, what you get is an insurance claim.

0 sats \ 0 replies \ @cryptocoin OP 9 Jan 2023

Your money still belongs to the bank,

What happens once they are insolvent can go many directions, but it's not the bank that decides what happens with their funds and assets once they are taken over.

25 sats \ 0 replies \ @swmtr 5 Jan 2023

And coincidentally, they want to prolong the bankruptcy proceedings to screw everyone and milk the cow even longer.

10 sats \ 0 replies \ @cryptocoin OP 5 Jan 2023

Many customers have clamored for the quick return of their crypto, arguing that the funds aren’t property of the Celsius bankruptcy estate. The firm’s lawyers, however, argued the terms of use—approved by users with the click of a button on their mobile devices—granted the ownership rights to Celsius so it could lend, sell, pledge and use the assets for investment purposes.

The link for this post is using an archive for the article on The WSJ's website. An archive has no paywall, no subscription requirement, and can be easier to read. The original article, on The WSJ's website is:

Celsius Network Wins Ownership Rights to Customer Crypto Deposits https://www.wsj.com/articles/celsius-network-wins-ownership-rights-to-customer-crypto-deposits-11672865422