Celsius Slapped with Another Lawsuit: 25,000 WBTC Involved - What You Need to Know
The bankrupt crypto lending company, Celsius, is facing yet another legal battle. This time, a new lawsuit targets users who withdrew their funds from the platform within 90 days before Celsius declared bankruptcy. The company is attempting to reclaim these funds, citing market conditions and potentially preferential withdrawals.
This new development adds to the existing woes of Celsius Network and its co-founder, Alex Mashinsky. Exactly one year after the company went bust, the feds on Thursday arrested Mashinsky and hit him with seven criminal charges, alleging he pocketed $42 million by misleading investors. The legal troubles continue to mount.
At the heart of this new lawsuit is the potential recovery of a significant amount of cryptocurrency. Reports indicate 25,000 Wrapped Bitcoin (WBTC) are involved, although some sources claim much larger amounts. This ties into a broader effort to reclaim funds that may benefit some crypto customers already set to receive payouts that would make...
The complexities don't end there. The New York Times reported on September 23, 2025, that A new lawsuit against Celsius Network’s criminally indicted co-founder may reap benefits for some crypto customers already set to receive payouts that would make...The aim of the lawsuit is to claw back the 39,500 bitcoinworth $2.3 billion at the current pricethat was transferred to Tether by Celsius before its collapse. This lawsuit adds another layer to the legal quagmire surrounding Celsius.
Further complicating matters, The crypto lender, which filed for Chapter 11 bankruptcy in July 2025, argues that “Tether forged ahead with an improper application of 39,542.42 Bitcoin,” potentially indicating further disputes regarding asset management and transfers prior to the bankruptcy filing. Celsius, along with its CEO, Alex Mashinsky, and other former employees of the company are... under scrutiny.
Stay tuned for updates as this complex legal battle unfolds. The outcome could significantly impact Celsius creditors and the broader crypto market.