U.S. bankruptcy judge rules that approximately $4.2 billion in cryptocurrency in Celsius interest-bearing accounts belongs to Celsius, not customers

ChainCatcher news, according to The Wall Street Journal, U.S. Bankruptcy Judge Martin Glenn ruled that approximately $4.2 billion in cryptocurrency held in interest-bearing accounts at the crypto lending platform Celsius Network belongs to Celsius, not to the thousands of customers. The judge's ruling stated that each company's rights to its customers' digital assets are clearly defined in their terms of use, and the contract between Celsius and its users is "clear" regarding the company's ownership, allowing Celsius to use the $4.2 billion in cryptocurrency at its discretion.

This decision will directly impact Celsius's ability to sell $18 million in stablecoins to cover costs associated with staying longer in bankruptcy protection. Celsius executives previously testified in bankruptcy court that the company's funds would run out in March, after which they would need to raise money to cover the costs of maintaining bankruptcy protection. (source link)