Celsius Networks filed for bankruptcy, and Celsius Network was forced to return $50 million worth of cryptocurrencies to its customers, per the order of a US judge. In other words, it is inevitable that customers using a crypto deposit account will receive their crypto money back and will not experience any loss.
Judge Martin Glenn delivered his decision orally at the hearing last Wednesday. According to this decision, the cryptocurrency that was the subject of the lawsuit was not included in the interest-bearing accounts of the customers, so there is no reason why these customers should not get their money back.
This ruling, made by Judge Martin Glenn, only applies to cryptocurrencies, which were valued at $44 million in September. However, Celsius owes other users billions of dollars in total.
During the hearing, Glenn also stated that he wanted this case to progress and that he wanted creditors to get as much back as possible as soon as possible.
According to the judge’s order, the funds of customers using Earn and Borrow products belonged to the company. However, coins in custody accounts outside of these funds do not belong to the company but belong to users, according to the decision of judge Martin Glenn.
The majority of Celcius’ assets are wrapped in cryptocurrencies in interest-bearing accounts rather than in custody accounts. However, legal action has yet to be taken, and a report has yet to be prepared about who owns these currencies. That’s why Judge Martin Glenn has yet to make a decision on these coins.
