A court has decided that Celsius Network is the rightful owner of the $4.2 billion worth of cryptocurrency deposited by its customers.
This allows the bankrupt platform to use the funds as it desires. Furthermore, customers who had stored crypto in the Earn program to gain interest, have been deemed unsecured debtors in the eyes of bankruptcy law.
It is improbable that there will be enough resources to fully recompense all customers, and they will need to prove that the cryptocurrency in their accounts is theirs in order to obtain any form of remuneration.
The judge furthermore authorized the sale of $18 million worth of stablecoins from Earn accounts, despite opposition from some US states that the sale was unnecessary, since Celsius had enough money to remain in operation for several more months.
This case may set a precedent for how customer cryptocurrency is handled in bankruptcy proceedings in the US.
