Bankruptcy judge orders return of $44 million in crypto to Celsius customers | The Financial Express

Bankruptcy judge orders return of $44 million in crypto to Celsius customers

The majority of the $4.7 billion in user funds

Bankruptcy judge orders return of $44 million in crypto to Celsius customers
As of August 29, 2022, Celsius had more than $210 million in custody accounts, but only about $44 million of those funds were compiled with the most recent order’s requirements

A federal judge has ordered cryptocurrency lender Celsius to give customers of the platform’s custody programme access to cryptocurrency valued at about $44 million, as reported by Cointelegraph.

United States Bankruptcy Judge Martin Glenn reportedly gave the verbal order during a hearing on December 7 and noted, “I want this case to move forward. I want creditors to recover as much as they possibly can as soon as possible.”

The latest decision follows an agreement between Celsius advisers and stakeholders that crypto deposited in the custody accounts belonged to its users, not the platform. The amount—which only applies to crypto held within custody accounts—is a negligible portion of the billions Celsius owes creditors.

It is significant to note that this order only applies to assets held in the custody programme and Celsius’ Earn accounts have never touched that.

As of August 29, 2022, Celsius had more than $210 million in custody accounts, but only about $44 million of those funds were compiled with the most recent order’s requirements, Cointelegraph noted. The majority of the $4.7 billion in user funds, on the other hand, is currently held in Celsius’ Earn accounts, which were the accounts that allowed depositors to earn interest, Cointelegraph further ntoed.

Only 170 of the company’s 370 employees are still employed by Celsius as a result of the mass exodus of workers the company has experienced since beginning the bankruptcy process.

(With insights from Cointelegraph)

Also Read: ‘e-rupee’ designed to complement rather than replace existing digital payments, says RBI

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First published on: 08-12-2022 at 11:02 IST