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Judge rules that Celsius Network holds $4.2 billion in customer crypto

Celsius Network owns $2.4 billion worth crypto

A judge has ruled that Celsius Network owns the $4.2 billion worth of cryptocurrency that was deposited by its customers.

This allows the bankrupt platform to use the funds as it wishes. The ruling also classifies Earn program customers, who had deposited their crypto in the program in order to earn interest, as unsecured debtors under bankruptcy law.

It is unlikely that there will be enough funds to fully repay all customers, and they will have to argue that they own the cryptocurrency in their accounts in order to recover any of their claims.

The judge also approved the sale of $18 million worth of stablecoins held in Earn accounts, despite objections from the US states that the sale was unnecessary as Celsius still had sufficient funds to continue operations for a few more months.

This case could set a precedent for how customer cryptocurrency is handled in bankruptcy proceedings in the US.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.