Ripple CTO Predicts Win For Celsius In Customer Withdrawal Clawback Case

Coingapestaff
July 25, 2024
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Ripple CTO Predicts Win For Celsius In Customer Withdrawal Clawback Case

Highlights

  • David Schwartz predicts a win for Celsius in the clawback lawsuit.
  • The clawback suit, suing users for withdrawn funds, is not wrong as per Ripple CTO.
  • Speculations of the crypto community countering Celsius also persist.

Ripple CTO David Schwartz’s recent remarks on the Celsius customer clawback lawsuit have gained significant traction across the crypto space. In the latest post on X, Schwartz hinted that the crypto lending firm might win the clawback suit ahead. This statement has echoed a frenzy across the broader market, sparking a wave of user concerns. Schwartz’s anticipation comes as a follow-up to the once-bankrupt firm’s decision to sue customers who withdrew funds from the platform before its bankruptcy,

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Ripple CTO Clears Waters On The Clawback Suit

A user on X recently posted, “I am being summoned in a New York Bankruptcy Court by Celsius Network LLC.” This summons comes in line with the crypto lending platform’s decision to sue customers who withdrew funds before bankruptcy.

In light of these legal developments, Ripple CTO David Schwartz claimed that Celsius might win the clawback suit. He stated, “They’ll probably win most of them just because it’s difficult and impractical to fight a trustee with an effectively infinite supply of other people’s money to fight with.”

Primarily, the CTO drew attention to the financial advantage the cryptocurrency firm levied. Moreover, he also clarified how the firm is right in suing its users, as the assets withdrawn were not theirs in reality.

The funds withdrawn by users did not actually belong to them. Instead, it was other people’s money that the firm facilitated to hide the loss of actual assets due to bad investments.

Concerning this, Ripple CTO added, “The company lost your money on bad investments. Then they sent you other people’s money to facilitate an ongoing fraud. The problem for you is not that they lost your money but that they gave you money they owed to others for a fraudulent purpose.”

Collectively, these developments have tilted the odds in favor of Celsius’ motion to sue users within the clawback suits.

Also Read: Bitcoin ETF Inflows Surge As Ether ETF Loses $133M In Hype Shift

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Can Celsius Be Countered?

Meanwhile, speculations of lawyers taking the case pro bono to counter the crypto firm’s financial advantage have also surfaced in the market. As seen previously, primarily in the Ripple vs SEC lawsuit, pro-XRP lawyers such as John E. Deaton and Bill Morgan have offered quite the legal aid in the XRP lawsuit on a pro-bono basis.

The global crypto community further awaits such aid within this lawsuit as well, with users even ready to establish a pool fund for lawyers, per discussions on X.

Also Read: BlackRock Ethereum ETF Wallet Receives 76,669 ETH From Coinbase

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.