Ripple CTO Predicts Win For Celsius In Customer Withdrawal Clawback Case

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Ripple CTO Predicts Win For Celsius In Customer Withdrawal Clawback Case – Crypto News

Published

12 months ago

July 25, 2024

Dripp

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,

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 Moreover, he also clarified how the firm is right in suing its users, as the assets withdrawn were not theirs in reality.

The funds withdrawn by users did not actually belong to them.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.

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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.

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