A brand new replace relating to the Celsius chapter case got here on Jan. 4 as Choose Martin Glenn dominated that the funds deposited to Earn Accounts, which quantity to $4.2 billion, are the property of Celsius, not the buyers.
The ruling doc states:
“The Court docket concludes, based mostly on Celsius’s unambiguous Phrases of Use, and topic to any reserved defenses, that when the cryptocurrency belongings (together with stablecoins, mentioned intimately beneath) had been deposited in Earn Accounts, the cryptocurrency belongings grew to become Celsius’s property; and the cryptocurrency belongings remaining within the Earn Accounts on the Petition Date grew to become property of the Debtors’ chapter estates (the “Estates”).”
Based on the doc, Celsius had round 600,000 accounts in its Earn program when the account holders filed the lawsuit. The funds deposited in these accounts amounted to $4.2 billion as of July 10, 2022.
Many account holders argued that they had been entitled to their funds and requested full returns. If the Choose had been to aspect with the account holders, this determination would tie their restoration to the distributions to unsecured collectors beneath a confirmed chapter 11 plan.
Celsius had secured an extension for submitting a chapter 11 reorganization plan on Dec. 6, 2022. The bankrupt lender has till Feb. 15, 2023, to submit an in depth plan disclosing the way it will maximize revenue for all collectors and stakeholders.
