How To Get Your Money Back If Your Funds Are Frozen On Celsius Or Any Exchange

By Kevin • June 15, 2022 11:00 pm • Comments

As many within the crypto industry are now aware, crypto lender Celsius has faced severe criticism over its decision to pause all withdrawals from its platform.

Due to this, many users of the platform are concerned about the status of the company and whether or not they will be able to get their funds back.

The company claims that they have the reserves to honor all withdrawal obligations to its customers, but that has not stopped the platform’s native token CEL from tanking ever since the announcement.

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However, it seems that there are some alternative ways that users can try to get their funds back from the Celsius or any other crypto exchange that has frozen your funds besides just waiting for the law to bring justice.

Joshua Browder shared a method on Twitter that will be able to do just this assuming that you have under $10,000 to $25000 that is frozen.

Browder shares his method:

If you have under $10,000-25,000 with @CelsiusNetwork (or any crypto exchange that has frozen your funds), here is a step by step guide on how to get your money back ahead of everyone else using the law:
1. As of right now, these exchanges have not yet filed for bankruptcy protection.

Therefore, they are subject to small claims court judgements.

Small claims court cases typically take 1-2 months. As long as this drags on longer than that, this strategy will work.

2. To file a small claims lawsuit, the first step is to send a demand letter.

The demand letter should say 1) how much you are owed 2) why you think you are owed the money.

For Celsius specifically, you should mail it (return receipt requested) to:
121 River Street, PH05,
Hoboken, NJ 07030 USA

3) After ten days, when they inevitably don’t respond, you can file a small claims court lawsuit in your local jurisdiction. @DoNotPay can handle the demand letter and filing for you, or you can go to your local website.

To summarize this method, essentially it is relying on small claims lawsuits in order to get back your capital.

However, as mentioned by Browder, there is a time limit on how long this method will work so it is essential to do this ASAP if you do have your funds frozen.

This is because it will no longer work if Celsius or the exchange in question decides to declare bankruptcy.

Once the company declares bankruptcy, you can no longer force the banks that currently holds their money to be returned back to you.

As always, there is a higher probability of success if this is done sooner and before the majority of people catch on.

Browder shares:

6) After you win your case with a judgement, surely they don’t have the money, right? How can you actually get paid?

Well, then you have a court judgement. You can go to every bank, every office, even their website domain, and collect your judgement, with a collection order.

7) You can FORCE every bank that holds their money to send you what you’re owed.

To collect, file a collection order with your state small claims court, or use
@donotpay

8) The more quickly you do this, the higher the chance you will get your money. Once
@CelsiusNetwork
files for bankruptcy, the lawsuits and collection orders won’t work. Until then, this is fair game.

As always, it seems that it is always safer to store your digital assets in a private wallet instead of an exchange as that will be the only way where you actually control your assets.

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