Celsius Clients Beg Bankruptcy Court to Release Crypto, One Customer Needs Funds to ‘Put Food on the Table’ – Bitcoin News

After the crypto lender Celsius filed for bankruptcy protection on July 13, the company recently contacted customers and explained that an employee from one of the firm’s vendors accessed a list of Celsius client emails, and the email addresses were “transferred to a third party.” Furthermore, Celsius customers have written to the court begging to get their crypto assets back as one client said he had less than $1K in the bank and his situation was a dire emergency in order to “keep a roof over my family and food on their table.”

Celsius Customers Informed About an Email Breach, Retail Investors Say They Were ‘Severely Impacted’ by Crypto Lender’s Fallout

It seems Celsius has been contacting customers by email, and explaining that a list of client emails were reportedly transferred to a third-party. The email says it was after an employee from one of Celsius’s vendors had accessed the list. The story became a topical conversation on social media, even though the crypto lender Celsius says “we do not consider the incident to present any high risks to our clients whose email addresses may have been affected.” Of course, many crypto community members shared the news far and wide across Twitter, Facebook, and Reddit.

This is not the first time data stemming from Celsius customers has been breached. Celsius reported on an “unidentified source has contacted some Celsius customers via unofficial channels” in April 2021. Sources at the time said Celsius customers were being solicited with phishing scams. The latest news about the Celsius email leak follows the company’s bankruptcy registration when it “filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York” on July 13.

The bankruptcy filing followed the company’s withdrawal and operations pause on June 12, at 10:10 p.m. (ET). At that time, Celsius announced that it paused “all withdrawals, swaps, and transfers between accounts.” As far as the bankruptcy proceedings are concerned, Celsius clients have written letters to the court asking to get their crypto assets back in a quicker manner than the traditional Chapter 11 bankruptcy creditors’ process. One customer, a single mother of two daughters, said that her family’s life was impacted a great deal.

“I and my family are severely impacted both in financial and mental health by the bankruptcy and…