The majority of the user funds totaling $4.7 billion
According to Cointelegraph, a federal judge has ordered cryptocurrency lender Celsius to provide users of the platform’s custody programme access to cryptocurrencies worth roughly $44 million.
According to reports, on December 7 during a hearing, United States Bankruptcy Judge Martin Glenn said, “I want this case to move ahead. I want creditors to get their whole amount back as quickly as feasible.
The most recent ruling is the result of an agreement reached between Celsius advisors and stakeholders that the platform’s users, not it, owned the cryptocurrency put in the custody accounts. The sum is a tiny percentage of the billions Celsius owes creditors and solely pertains to cryptocurrency stored in custody accounts.
It is crucial to note that Celsius’ Earn accounts have never touched this order, which solely relates to assets stored in the custody programme.
Only around $44 million of Celsius’s more than $210 million in custody accounts as of August 29, 2022 were compliant with the most recent order’s conditions, according to Cointelegraph. Cointelegraph said that most of the $4.7 billion in user money are presently kept in Celsius’ Earn accounts, which were the ones that allowed depositors to earn interest.
Due to the massive staff exodus the firm has undergone since starting the bankruptcy process, just 170 of the 370 employees of the company are currently employed by Celsius.
