Crypto firm Celsius set to return $50 million of crypto to custody account holders on judge’s orders
- Celsius Network, a crypto lender, was ordered by a bankruptcy judge to return $50 million of crypto to custody account holders.
- According to the bankruptcy filing, Celsius has 15,680 customers holding pure custody assets worth $44 million with the lender.
- Celsius Network’s native token CEL is up 12% overnight, following the news of the court’s order to return customer funds on December 7.
Celsius Network owes $44 million to customers holding “Pure Custody Assets” with the firm. Martin Glenn, a judge at the bankruptcy court ordered the crypto lender to return the assets held in custody to users. The firm moved more than $200,000 in assets into custody accounts before filing for bankruptcy, offering an opportunity to make customers whole.
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Celsius Network set to return millions in crypto on judge’s orders
Celsius Network has received orders from Chief bankruptcy Judge Martin Glenn to return $44 million in crypto assets to custody users of its lending platform. Celsius had filed for Chapter 11 bankruptcy in July 2022, and the filing revealed that the firm owed between $1 billion and $10 billion and claimed more than 100,000 creditors.
Before its bankruptcy filing, the crypto lender managed to move around $200,000 in cryptocurrencies to its custody accounts. This move was an opportunity for customers who suffered from the bankruptcy filing to be made whole. Custody account holders can now claim ownership of their funds.
Judge Glenn ruled that Celsius doesn’t have to return funds where transfers were less than $7,500, this accounts for $11 million in assets.
Bloomberg reported that the lender is now working on making custody account holders whole as their funds did not belong to Celsius’ estate and the firm was simply a guardian for the same. According to Celsius’ bankruptcy filing, the firm has 58,300 users who collectively deposited over $210 million with its custody and withhold, 15,680 customers held "Pure Custody Assets" with the lender, worth around $44 million.
Celsius native token CEL begins recovery
In response to the update from bankruptcy judge on Celsius Network’s stance on returning customer funds, native token CEL witnessed a recovery rally. Celsius token yielded nearly 12% gains overnight, and is trading at $0.7322 at press time.
Jamers2012, a crypto analyst on Twitter evaluated the Celsius token price chart and noted that CEL has seen more volume in the last three days than it has experienced during its rally in August 2022.
CEL/USDT price chart
Buyers have lined up to scoop CEL token and the expert has predicted a breakout in Celsius Network’s native token.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
