Celsius Bankruptcy Ruling May Give Hope to FTX Victims
A U.S. judge has determined that certain customers of bankrupt crypto lender Celsius Network are entitled to receive their deposits back.
Celsius Network was among the larger crypto platforms to go bankrupt this year, after suspending withdrawals in June. Now, a ruling on customer assets in its bankruptcy case could set a precedent for similar cases, such as FTX.
Celsius Account Differences
U.S. Bankruptcy Judge Martin Glenn is determining who is entitled to funds held in accounts on the Celsius Network. If he decides that deposits are the property of customers, they will be more likely to receive their assets back. On the other hand, if he decides those holdings belong to Celsius, those customers join the extensive list of creditors.
Celsius has argued that assets held between its “earn”, “custody”, and “withhold” accounts should be designated differently.