Crypto Exchange FTX and Celsius Network Face Harsh Criticism and Legal Backlash

By: Eva Baxter

Leading cryptocurrency platform, FTX's CEO, John Ray III, debunks claims about the extent of losses experienced by users of the now-defunct exchange. Against previous claims that the exchange remained solvent at its bankruptcy, the CEO asserts that the harm to FTX customers was 'vast'. Allegedly, Sam Bankman-Fried's theft of assets from the exchange has hampered the ability to return assets to customers. Despite these challenges, restructuring efforts have been ongoing.

Simultaneously, the crypto platform, Celsius Network, which filed for bankruptcy last year, demands that major customers who withdrew over $2 billion before its declaration return the funds. Celsius Network seeks to confront approximately 2% of its users who withdrew around 40% of Celsius's assets within the 90 days preceding the Chapter 11 filing. The platform has informed customers about the possibility of legal action if settlement offers are declined.

Despite the turbulence, Ray praised his restructuring team for their efforts in reclaiming the lost assets. Similarly, Celsius boasts of distributing around $2 billion in assets under its ongoing rehabilitation plan.