A U.S. bankruptcy judge has ordered Celsius Network, a defunct crypto lender, to reimburse $50 million worth of crypto to custodial account holders.
Celsius Custody account holders finally have justice
In September, roughly a month after filing for bankruptcy in July, Celsius filed to refund custody holders’ funds. The filing came in advance of a separate hearing to respond to ongoing inquiries regarding its efforts to restructure and relaunch its activities.
Према петицији, Целсиус има око 58,300 потрошача који су депоновали више од 210 милиона долара уз услуге чувања и чувања. Поред тога, 44 ових клијената држи око 15,680 милиона долара „чисте кастоди имовине“. Стечајни суд за јужни округ Њујорка, који је надлежан за овај случај, заказао је рочиште за 6. октобар ради разматрања ове теме.
Према Блоомберг, United States Bankruptcy Judge Martin Glenn issued the verbal order during a hearing on December 7. The injunction pertains to a quantity of cryptocurrency valued at approximately $44 million in September.
In addition, the judge noted:
„Желим да се овај случај крене даље. Желим да се повериоци опораве колико год могу што је пре могуће.”
Celsius argument over bankruptcy holdings
целзијус argued that contrary to clients of its Earn or Borrow programs, customers with custodial accounts retain control of their crypto assets. Therefore, these funds belong to the clients and not to the estate of Celsius. Celsius was only the source of storage space.
The amount that relates to crypto kept in custody accounts is a minuscule fraction of the billions Celsius owes its creditors. As of August 29, Celsius possessed about $210 million in custody accounts, but only about $44 million of funds met the requirements of the most recent order.
Celsius’ Earn accounts, which let depositors earn interest, hold most of the $4.7 billion in customer funds. Celsius claims that consumers who put funds into its earn accounts gave up ownership of the funds when they agreed to its terms of service.
Према Dec. 5 report, Celsius is selling $18 million of stablecoins from these accounts to support its reorganization. Glenn will address fund ownership on December 12.
Source: https://crypto.news/judge-orders-celsius-to-reimburse-50-million-to-crypto-investors/