Judge rules $4.2B belongs to Celsius

A caller update regarding the Celsius bankruptcy lawsuit came connected Jan. 4 arsenic Judge Martin Glenn ruled that the funds deposited to Earn Accounts, which magnitude to $4.2 billion, are the spot of Celsius, not the investors.

The ruling document  states:

“The Court concludes, based connected Celsius’s unambiguous Terms of Use, and taxable to immoderate reserved defenses, that erstwhile the cryptocurrency assets (including stablecoins, discussed successful item below) were deposited successful Earn Accounts, the cryptocurrency assets became Celsius’s property; and the cryptocurrency assets remaining successful the Earn Accounts connected the Petition Date became spot of the Debtors’ bankruptcy estates (the “Estates”).”

According to the document, Celsius had astir 600,000 accounts successful its Earn programme erstwhile the relationship holders filed the lawsuit. The funds deposited successful these accounts amounted to $4.2 cardinal arsenic of July 10, 2022.

Many relationship holders argued that they were entitled to their funds and requested afloat returns. If the Judge were to broadside with the relationship holders, this determination would necktie their betterment to the distributions to unsecured creditors nether a confirmed section 11 plan.

Celsius had secured an hold for submitting a section 11 reorganization program connected Dec. 6, 2022. The bankrupt lender has until Feb. 15, 2023, to taxable a elaborate program disclosing however it volition maximize nett for each creditors and stakeholders.

The station Judge rules $4.2B belongs to Celsius appeared archetypal connected CryptoSlate.