legal representation

Celsius Depositors Fracture Again on Legal Strategy as ‘Withhold’ Group Lawyers Up

Failed cryptocurrency lender Celsius Network has seen yet another set of claimants band together and hire a lawyer, as the firm’s bankruptcy becomes an evermore messy and fractious affair.

The so-called “Withhold Accounts” group is composed of customers in U.S. states where Celsius became unable to offer them serviceable custody accounts thanks to celsius-violated-securities-laws/” data-ylk=”slk:cease and desist orders from regulators” class=”link “cease and desist orders from regulators. These people were given the option to move their funds to withhold accounts, where it remains frozen.

The withhold group, which accounts for just $14.5 million of the roughly $12 billion marooned on Celsius when it stopped withdrawals back in June, has hired the legal representation of Deborah Kovsky-Apap, a partner at Troutman Pepper.

“We believe that the coins held in Withhold are not property of the estate,” said Kovsky-Apap in an email. “They’re simply not part of the Celsius ecosystem – it’s more like the depositors left their wallet at the bar and the bartender is just holding onto it until they come back to get it. We believe the Withhold accounts should be unfrozen as soon as possible so that depositors can retrieve their property.”

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