Bankruptcy Judge Demands Return of $44M in Crypto to Celsius Users
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Bankruptcy Judge Demands Return in Crypto
According to reports, United States Bankruptcy Judge Martin Glenn issued the verbal ruling during a hearing on December 7 and noted that there should be progress in this situation. Additionally, the exchange should pay back the creditors their whole amount as quickly as possible.
The newest judgment was made after a deal was struck between Celsius consultants and investors that cryptocurrency put in the custodial accounts related to its users and not the network. The amount solely relates to cryptocurrency housed within custody accounts, which is a negligible portion of the billions Celsius owes creditors.
Celsius Earn Accounts
It is significant to mention that this judgment solely relates to assets stored in the custody program and that have never been accessed by Celsius' Earn accounts.
At the time of the most recent judgment, around $44 million of the approximately $210 million Celsius had in custody accounts met the requirements. Contrarily, the majority of the $4.7 billion in user money is presently held in Celsius' Earn accounts, which were the ones that allowed depositors to earn income.
Plans to Sell Stablecoins
According to Celsius, customers who deposited money into its earn accounts decided to give up possession of the funds when they accepted the company's terms of service. A resource article from December 5 claims that Celsius intends to sell $18 million worth of stablecoins stored in these accounts to raise money for its restructuring, with Glenn scheduled to address the matter of fund ownership on December 12.