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US Court Orders Celsius To Return $44 Million Crypto Assets In Escrow Accounts To Users

Foxy - Coincu
2022-12-08 03:51
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The US court ordered Celsius to return approximately $44 million worth of cryptocurrencies to users in escrow accounts during a hearing on December 7. This is only a fraction of the amount of money stuck on users’ platforms.
According to Bloomberg, U.S. Bankruptcy Court Judge Martin Glenn issued an order that crypto lending platform Celsius Network must return approximately $44 million worth of cryptocurrency to users, even if it doesn’t enjoy Celsius’s interest.
It said the parties involved had previously concluded that the money placed into the so-called escrow account belonged to the user, not Celsius.
However, the tokens in the interest account make up the majority of company’ assets, and the legal disposition of these tokens is still undecided.
The report said Celsius held more than $200 million of assets in escrow as of September, but most of those tokens were moved from interest-bearing to escrow accounts shortly before the bankruptcy. That means Celsius can have ownership of cryptocurrencies under the so-called preferential transfer rules.
As mentioned in the previous Coincu News article, the bankrupt cryptocurrency lender, has gained court authority to extend its exlusivity period until February 15. This is the period during which this company has a monopoly submit the reorganization plan under chapter 11.
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