bankruptcy judge, Celsius Network LLCIt ruled against thousands of customers, ruling that digital currencies deposited in interest-bearing accounts of the firm belong to the firm, and settled a major legal issue in crypto-related bankruptcies.
Celsius Network Acquires Ownership of Customer Crypto Deposits
The bankruptcy judge ruled that the firm can use the $4.2 billion cryptocurrency deposited in high-interest accounts as it sees fit.
With this decision, 4.2 billion dollars cryptocurrency It was stated that the deposits are the property of Celsius, enabling the company to use its digital assets as it sees fit, and at the same time, its hopes have been hit by declaring thousands of customers as unsecured creditors.
The question of who owns the crypto assets on bankrupt digital exchanges, trading firms and other platforms. Celsiusof and FTX and BlockFi Inc.. It is at the center of chapter 11 lawsuits from other firms that went bankrupt last year, including
In his ruling, Judge Glenn said that each firm’s rights to its customers’ digital assets are spelled out in their terms of use, and Celsius’s contract with its users was “clear” about the firm’s proprietary rights.
Related Content: Mining Data Company Announces ‘Hashrateindex’ Bear Market End Date!
Bankruptcy courts are just beginning to unravel what these terms of use mean for billions of dollars of cryptocurrency trapped on bankrupt platforms.
Many users were demanding that their crypto money be returned as soon as possible, arguing that the funds did not belong to the bankruptcy of Celsius company.
However, the firm’s lawyers argued that the terms of use, approved by users with the click of a button on their mobile devices, give Celsius ownership rights so that it can lend, sell, pledge and use assets for investment purposes.
*Not investment advice.