Celsius transferred over $200 million in crypto into custody accounts before going bankrupt. However, this order only applies to assets held in the custody programme and Celsius’ Earn accounts have
It is significant to note that this order only applies to pure custody assets – those that have never touched Celsius’ Earn accounts and have only ever been held in the custody program. It means only around $44 million of funds fit within the latest order’s criteria.
United States Bankruptcy Judge Martin Glenn in a Dec. 7 hearing has ordered Celsius to return these assets to users. “I want this case to move forward. I want creditors to recover as much as they possibly can as soon as they possibly can”, he said. How to address assets held in the Celsius Earn program, a customer account program that paid out rewards but stopped taking in new business after a period of time after regulatory pressure, has yet to be decided.
Celsius filed for Chapter 11 bankruptcy protection in July, revealing it has $1 billion to $10 billion in debt with more than 100,000 creditors. Earlier this week, Celsius received a new deadline to file for its Chapter 11 restructuring plan. Accordingly, the Court approved Celsius’ request and extended the period until February 15th, 2023.
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