The ongoing litigation of bankrupt Celsius Network has ruled that assets in the “Earn” program belong to the company, not customers.
U.S. Southern District of New York bankruptcy judge Judge Martin Glenn Celsius’s Earn program assets are owned by the company and do not have a say in its customers, a court order issued by the company said.
Judge Glenn verbally on the platform in previous hearings $44 million cryptocurrency Celsius stated that it should be returned to its customers.
Among the most controversial assets of Celsius, which closed its withdrawals from the platform on June 12 and filed for bankruptcy, were assets in the Earn program. In Celsius’s Earn program, distributed across various cryptocurrencies as of July 2022 23 million dollars about stablecoins It was $4.2 billion.
Celsius’s decision, which is the subject of the news “Explicit Terms of Use” Judge Glenn stated that the assets deposited in Earn’s account became the property of Celsius:
Assets in the Earn program are owned by the company. The company can also sell the stablecoins there for their usual workflow spending.
On the other hand, this decision of Judge Glenn will be used in similar courts in the coming period. may act as a precedent. US-based cryptocurrency exchange Gemini also had a similar liquidity problem with Celsius, and then the “Earn” program stop withdrawals had explained. This Genesis originated liquidity shortage Tensions escalate between Gemini and Genesis’ parent company, Digital Currency Group (DCG). litigation of the matter case of the judgment against Celsius. will be precedent is being considered.