What does Celsius Network Inc. do?
Celsius is a cryptocurrency trading company. They are a company that's incorporated in Delaware and registered in every state they do business in, making it very easy to find their registered agent, send them demand letters, and serve them court paperwork.
They recently froze all customer accounts resulting in people being unable to withdraw their crypto or fiat currency. This is a guide on filing a lawsuit against them small claims. If you think they may have performed some kind of fraud against you as a user, this guide be of service to you.
Most corporations, particularly those running out of money, ignore threats or actual lawsuits in small claims court many times, resulting in the plaintiff (person who is suing them) winning a default judgment against them. This could protect your assets much more in the case of bankruptcy as court judgments often have to be paid out in bankruptcy before investors can get paid back their money.
Introduction to suing Celsius.Network in Small Claims Court
Celsius can be sued for $10,000 in their home state of New York in small claims court. However, since they operate in every state, they can be sued locally for as much as $20,000 based on the small claims limit in that state.
People have been frequently suing Celsius for:
- Lost of access to Celsius account
- Money wrongfully transferred
- Frozen accounts that cannot be withdrawn
The first step of suing Celsius in Small Claims Court
The first and most important thing to do when suing Celsius is to make sure that you sue the right legal entity. Big companies often own lots of smaller companies that are very interconnected, so be sure to review the contracts you’ve signed with Coinbase for any legal entities they mention in your contract with them. By suing the wrong company, even if owned by the same parent company, you can have your case dismissed and you’ll have to file another small claims lawsuit.
For most cases, the legal name of Coinbase is Celsius Network LLC but be sure to double-check! You can try to file against one company, and if the suit fails because the wrong entity is named, refile against the other one.
Finding Celsius's Registered Agent
The registered agent of Coinbase in the state of incorporation is:
The Corporation Trust Company
1209 Orange St, Wilmington, New Castle, DE 19801
If you’re suing Celsius in another state, then you might need to name a different registered agent. You can always send a demand letter to Corporation Service Company in the state of Delaware no matter what state you’re filing in.
See below to find the registered agent for Celsius in your state.
How to write a Demand Letter to Celsius
- On the top, in the address block, put in the company name and address:
100 Pine Street Suite 1250 San Francisco, CA 94111
- Next, put the subject line as 'Re: Demand for Payment'
- In one sentence, tell them how much Celsius owes you which you will claim in your small claims lawsuit.
- Then, in two to three sentences describe your issue. (ex: why you are owed for Failure to deliver package)
- Finally, state in plain language that you will go to small claims court if necessary. Don't say that you will do anything else, such as speaking poorly about them.
- On the bottom, include your name and address
If you want to send a professionally written letter on our letterhead, check out what options we provide.
How to send a demand letter to Celsius
After you write the demand letter to Celsius, you’ll want to send it to their registered agent so that it’s guaranteed to go to the legal department. Make sure that you get a tracking number for the mail you send them. It can become important evidence in your case.
File your small claims forms against Celsius
You’ll need to find and prepare your small claims form based on where you decide to sue. Usually, people sue where the defendant lives or does business.
Then, wherever you decide to sue, look up the county's small claims system. They’ll provide details on their website about what small claims forms are necessary. You can read more about the small claims process here.
The Benefits of Small Claims Court
- Court filing fees are cheaper in small claims than in other courts.
- The process is faster in small claims than in other courts, as your hearing will usually be scheduled 30-70 days after you file the lawsuit.
- Lawyers are generally not allowed in small claims, which helps keep the costs of suing low.
How Much it Costs
So how much will you spend by suing Celsius in small claims court?
- Court Filing Fees: The amount you will pay to file a small claims lawsuit depends on how much you are suing for and where you are suing. You can expect to pay between $30 to $400 to file the lawsuit. If you cannot afford to pay court fees, you can ask the court to waive the fees.
- Serving Costs: Once the lawsuit is filed, you must notify Celsius that you have sued them. This is called "serving." Serving Costs can range from $20-100 depending upon the local area.
Remember, if you win, you can request that Celsius pay for your court fees and serving costs.
Serve your Small Claims Paperwork to Celsius
After the court accepts your paperwork, you have to serve your court paperwork to the defendant to notify them they're being sued officially. This is also another point where people will often realize they should settle before going to court. This is the one step you aren't allowed to do yourself.
To avoid bias, the court requires you to get someone else to serve your case and file a proof of service in court (a simple statement that they swear they served the defendant). The free way to do this is to get a friend or family member who isn't part of the case to help you. The hassle-free professional way to serve court papers is to hire a process server and let them take care of it.
Go to your Small Claims Hearing against Celsius
On the date of your small claims trial, be sure to arrive early and well-prepared. Bring at least three copies of all evidence you intend to present, and if your hearing is remote be sure to have provided copies in advance to the other party and to the court. Failure to follow the strict local guidelines can result in your case being dismissed, but if you’ve followed the rules then you can often win by default when the other party doesn’t show up.
Ready? Taking the First Step
If all of this work seems complicated or daunting, rest assured that it's easier than it initially seems. 2.7 million small claims court cases are filed annually in the US, which is only growing as more people realize how easy it is to enforce their legal rights in court.
There's no rush. But when you're ready to sue Celsius, you can get started with a simple demand letter online. Please get in touch with us if you have any additional questions.
Frequently Asked Questions:
Is there a deadline to file a claim against Celsius?
It depends on the type of filing you want to make against Celsius. If you want to connect with their recent bankruptcy and make a filing, you have until January 3rd, 2023.