Judge rules $4.2B belongs to Celsius News โธ Celsius โธ Bankruptcy
Judge rules $4.2B belongs to Celsius
Judge Martin Glenn ruled that the funds deposited in Earn Accounts belong to Celsius
1 min read
Updated: Jan. 5, 2023 at 1:56 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A new update regarding the Celsius bankruptcy case came on Jan. 4 as Judge Martin Glenn ruled that the funds deposited to Earn Accounts, which amount to $4.2 billion, are the property of Celsius, not the investors.
The rulingย documentย states:
“The Court concludes, based on Celsiusโs unambiguous Terms of Use, and subject to any reserved defenses, that when the cryptocurrency assets (including stablecoins, discussed in detail below) were deposited in Earn Accounts, the cryptocurrency assets became Celsiusโs property; and the cryptocurrency assets remaining in the Earn Accounts on the Petition Date became property of the Debtorsโ bankruptcy estates (the โEstatesโ).”
According to the document, Celsius had around 600,000 accounts in its Earn program when the account holders filed the lawsuit. The funds deposited in these accounts amounted to $4.2 billion as of July 10, 2022.
Many account holders argued that they were entitled to their funds and requested full returns. If the Judge were to side with the account holders, this decision would tie their recovery to the distributions to unsecured creditors under a confirmed chapter 11 plan.
Celsius had secured an extension for submitting a chapter 11 reorganization plan on Dec. 6, 2022. The bankrupt lender has until Feb. 15, 2023, to submit a detailed plan disclosing how it will maximize profit for all creditors and stakeholders.
Mentioned in this article
Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
Featured Story
Advertise Here
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.