A court demands that Celsius repay $44 million in crypto to its subscribers
Chief Bankruptcy Judge Martin Glenn decided that bankrupt cryptocurrency lender Celsius must repay millions of dollars to its customers.
Before declaring bankruptcy this summer, Celsius put more than $200,000 in assets into custody accounts, creating the prospect that it might claim ownership of those funds.
Even if it didn’t enter Celsius’s interest-bearing accounts, crypto lender Celsius Network must restore around $44 million worth of coins to consumers.
According to Bloomberg, Chief Bankruptcy Judge Martin Glenn granted the decision on Wednesday after parties to the dispute determined that the monies belong to users and not Celsius.
Before declaring bankruptcy last summer, Celsius put more than $200,000 in assets into custody accounts, creating the prospect that it may claim ownership of those funds. However, Glenn determined that Celsius is not required to repay cryptocurrency if the transactions were less than $7,500, or around $11 million worth of assets.
In July, Celsius filed for Chapter 11 bankruptcy protection after disclosing between $1 billion and $10 billion in obligations and more than one hundred thousand creditors.
This week, Celsius was granted an exclusivity extension until February 15 for the ability to file a Chapter 11 restructuring plan.