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A federal judge has ordered cryptocurrency lender Celsius to return approximately $44 million worth of cryptocurrency to customers of the platform’s custody program.
According to Bloomberg, verbal orders are delivered At a December 7 hearing, U.S. Bankruptcy Judge Martin Glenn said:
“I want to move forward with this lawsuit. I want my creditors to recover as soon as possible,” he said.
The amount, which applies only to cryptocurrencies held in custody accounts, is a small fraction of the billions of dollars that Celsius owes its creditors, and the latest decision is between Celsius’ advisors and stakeholders. , after reaching an agreement that the cryptocurrency deposited in the custody account belongs to the user. Not a platform.
It is important to note that this order only applies to pure custody assets (assets that have never had access to a Celsius Earn account and have only been held under the custody program).
Celsius had more than $210 million in custody accounts as of August 29, but only about $44 million in funds that meet the criteria of the latest order.
Meanwhile, the Celsius Earn Account, the account from which depositors can earn interest, is where most of the $4.7 billion worth of user funds is currently locked up.
Celsius claims that users who deposit funds into its accounts have relinquished ownership of the funds upon agreeing to the company’s terms of service, according to a December 5 Bloomberg report: suggest Celsius will sell $18 million in stablecoins held in these accounts to fund a reorganization set to address the issue of ownership of the funds by Glenn on December 12th. Trying to.
Related: Novogratz’s Galaxy Digital buys Celsius’ GK8 in bankruptcy garage sale
Meanwhile, on December 5, the lender received judge approval of its $2.8 million Key Employee Retention Program (KERP) filed on October 11.
#Celsius Hearing Live: KERP Approved. Explains Celsius exclusivity. K&E talks about his February 15 compromise. Auctions and planning are all coordinated with UCC to extend awareness of the community’s level of frustration.
Simon Dixon (Beware of Impersonation) (@SimonDixonTwitt) December 5, 2022
Bonuses are paid to selected employees and are intended to encourage employees to stay with the company and continue limited business operations.
Employees at Celsius are leaving one after the other, leaving only 170 employees, compared to 370 when the bankruptcy process began.
