A ruling issued Wednesday by Chief Bankruptcy Judge Martin Glenn ordered crypto lender Celsius Network to return around $44 million worth of crypto to customers, even if the funds were not placed in Celsius’s interest-bearing accounts.
According to Bloomberg, the parties involved in the case had determined that the funds belonged to users, not Celsius.
Before its bankruptcy this summer, Celsius moved more than $200,000 worth of assets into custodial accounts, thus raising the possibility that it could claim ownership of those funds.
However, Glenn ruled that Celsius was not obligated to return crypto assets worth less than $7,500 each, amounting to approximately $11 million in total.
Last July, Celsius declared bankruptcy under Chapter 11, revealing liabilities estimated at between $1 and $10 billion, and claiming over 100,000 creditors.
This week, the firm was granted an extension for its exclusive right to submit a reorganization plan, which is now due on February 15.