As Bloomberg News reported today, Celsius Networks (CEL) A US bankruptcy judge handling the bankruptcy case, the cryptocurrency company 50 million dollars He ordered him to return the value of crypto to the users of their custodian accounts.
Bankruptcy Judge of Crypto Lender Celsius (CEL) Orders $50M in Crypto Returns to Custodian Account Holders
Celsius (CEL) Customers with assets in such accounts in September cryptocurrency He made a request for a refund.
In September, nearly a month after Celsius filed for bankruptcy in July, it filed to return custodians’ funds to them before a separate hearing to address ongoing questions about its efforts to restructure and restart its operations.
According to the filing, Celsius has around 58,300 users who have collectively deposited over $210 million.
15,680 customers hold “Pure Custody Assets” worth approximately $44 million.
The Bankruptcy Court for the Southern District of New York, which is hearing the case, has scheduled a hearing for October 6 to discuss the matter.
The decision was verbalized at a hearing on Wednesday, and it applies to some crypto, which was valued at around $44 million in September. Celsius owes other users billions of dollars in coins.
Celsius’ argument was that customers with custodian accounts still retain ownership of their crypto assets, unlike Celsius customers who use Earn or Borrow products.
Celsius was acting solely as a storage provider. Therefore, these funds belong to customers, not Celsius’ property.
*Not investment advice.
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