Court Records from Celsius's Bankruptcy Show Customer Information

The court records produced as part of the action, along with the personal information of thousands of the company's customers, have been made public in another development in the legal difficulties of bankrupt cryptocurrency lender Celsius Network.

Anyone with access to the court document has access to more than 14,500 pages of information about the co-founders of the platform, Alex Mashinsky, Dan Leon, and Nuke Goldstein's financial dealings as well as their names, wallet IDs, and information about their cryptocurrency transactions.

It was revealed earlier this month that Mashinsky, who resigned as the business's CEO in late September, withdrew over $10 million from the now-bankrupt cryptocurrency lender weeks before the company took the decision to freeze its clients' accounts on June 12 and shut down its operations. The next month, Celsius Network declared bankruptcy under chapter 11, leaving behind debts totaling nearly $1.2 billion.

The judge rejected the company's lawyers' bid to have the users' personal information redacted.

In the meantime, the most recent development has resulted in a largely negative reaction to the disclosure on social media platforms dedicated to cryptocurrencies. However, other business experts approached the problem differently.

Customers weren't making deposits; they were lending money to Celcius. As a result, they are creditors who need to be named in the petition, wrote Cliff Van Buren in a tweet.

"They made absolutely no sense. Quite the reverse, in fact. In all of their marketing activities, they used the word "deposit." The phrase "lend" never appeared, according to user JamSalad, who disagreed.

This month, the lender's property will be put up for auction, with the final bid date scheduled for October 17. According to paperwork submitted to the U.S. Bankruptcy Court, the auction will happen on October 20 if necessary. The deadlines for the sale objection and cure are set for October 25.