Celsius Network owns customers $4.2 billion crypto, Judge rules

1 year ago 98

Celsius Network has conscionable won ownership of the $4.2 cardinal worthy of crypto deposited by its customers, according to WSJ. This determination present allows the bankrupt level to usage the funds nevertheless it wants. Notably, this money belonged to astir 600,00o Earn programme users. This programme initially allowed customers to marque involvement connected their crypto deposits.

The ruling read,

“when the cryptocurrency assets (including stablecoins, discussed successful item below) were deposited successful Earn Accounts, the cryptocurrency assets became Celsius’s property; and the cryptocurrency assets remaining successful the Earn Accounts connected the Petition Date became spot of the Debtors’ bankruptcy estates”

This lawsuit could present enactment arsenic a precedent for however customers’ cryptocurrencies would beryllium handled successful bankruptcy proceedings successful the United States. And, it should beryllium noted that Celsius is not the lone crypto steadfast that’s presently successful the midst of bankruptcy successful the US. Notably, FTX US was the astir caller to articulation the database of bankrupt crypto platforms.

Celsius goes nether aft suspending withdrawals

Notably, the crypto lending level went nether successful July 2022, a period aft the level suspended its withdrawals citing utmost marketplace conditions. At the time, the level held lawsuit cryptocurrencies worthy $4.2 cardinal astatine the clip successful assets, portion its liabilities stood astatine $5.5 billion.

The communicative is inactive developing.

Priya is simply a full-time cryptocurrency writer astatine AMBCrypto concentrating mostly connected privateness coins. A postgraduate successful economics, Priya focuses connected developments connected Ethereum and blockchain technology.

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