The judge ruled that the property was deposited in Celsius The network is “owned by the company”, according to the terms that the users themselves “agreed” to in the first place.
Significant moment in the Celsius bankruptcy as Judge Martin Glenn rules that $4.2bn of crypto earn by customers to earn interest belongs to the estate, not the users: https://t.co/8jApMljZZ9 pic.twitter.com/UCoxKBeCbbJanuary 4, 2023
The decision comes as a blow to the approximately 600,000 creditors who have deposited assets in Celsius Earn (an investment portfolio that allows depositors to earn interest), valued at $4.2 billion since the company's inception. filed for bankruptcy. However, Celsius is said to have full ownership of this depository fund.
Many customers countered the court's decision, arguing that the "wording" of Celsius's contract was "ambiguous". Many people did not read or understand, but simply clicked the button to agree to confirm. And yet, Celsius has updated the agreement eight times and made changes close by, saying Celsius has even threatened to suspend the account if it doesn't agree to the new terms.
Judge Martin Glenn said:
Accordingly, this decision is to allow the company to sell 18 million USD stablecoins to cover expenses according to the timeframe in chapter 11. Celsius executives revealed that the company will run out of money in March and will need to raise funds to cover it afterwards.
In fact, Earn accounts make up the majority of customer deposits at Celsius, which went bankrupt with a $1.2 billion loss on its balance sheet. The ruling that most of Celsius' customers were "unsecured creditors" indirectly stated that customers would have to wait for Celsius to develop a restructuring plan, find a buyer for its assets before taking any back. any amount.
At the beginning of December, the court ordered Celsius to pay $44 million to the customer, after confirming that the money met the criteria of pure custodial assets and "belongs to the customer".