Court to decide whether lender owns customer crypto

Share post:

In federal court, a crucial legal issue will be decided concerning whether Celsius Network LLC depositors ceded ownership of their cryptocurrencies in exchange for interest payments, as well as the legal treatment of coins in interest-bearing accounts, which constitute the majority of Celsius’ assets. This decision will be taken by U.S. Bankruptcy Judge Martin Glenn in New York City

Celsius asked US Bankrupcy Judge Martin Glenn for permission to sell $18 million in cryptocurrency to cover operating expenses while devising a repayment plan for creditors.

Glenn’s subsequent decisions will help shape how crypto is treated in accounts frozen at other failed firms like FTX, Voyager Digital Ltd, and BlockFi, which do not have enough funds to repay everyone in full.

Customers’ assets are far more likely to be returned if their Celsius deposits are determined to be theirs. Customers who have Celsius account holdings will be at the back of the line for repayment, receiving pennies on the dollar.

Celsius advisers and several stakeholders decided that coins placed solely in so-called custody accounts belong to users, not the bankrupt company.

Celsius has also asked the judge for permission to sell the $18 million in cryptocurrency in order to keep the business running and pay bills.

The sources for this piece include an article in Reuters.

Featured Tech Jobs



Related articles

Nvidia’s CTO says cryptocurrency is “useless” for society

Nvidia has declared that cryptocurrencies offer "nothing useful for society", despite its powerful processors selling in vast quantities...

Crypto winter presents difficulties for Bitcoin ATM operators

The cryptocurrency market has been experiencing a significant downturn, also known as "crypto winter," and operators of bitcoin...

New FTX CEO plans to revive bankrupt FTX

The bankrupt cryptocurrency exchange FTX is considering resuming operations, according to Chief Executive Officer John Ray. Mr. Ray stated...

Chainalysis says ransomware payments reduced by 40% in 2022

According to a new report by blockchain forensics firm Chainalysis, ransomware payments are down 40.58% as more victims...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways