• Judge Martin Glenn has ruled that ownership of assets in Celsius Network’s Earn Accounts belongs to debtors, therefore the stablecoins deposited by Celsius customers will be liquidated to cover bankruptcy costs.
• The court noted that it does not take lightly the results of the decision on individual investors, and customers will have to wait longer before receiving a refund from the bankrupt firm.
• Celsius Network recently filed a motion to extend the prior schedule for the Bar Date before Judge Glenn, to January 10, 2023, at 11:00 a.m. ET.
The judge of the United States Bankruptcy Court for the Southern District of New York, Martin Glenn, has recently ruled that ownership of the assets in Celsius Network’s Earn Accounts belong to debtors. This ruling came after Celsius customers found themselves trapped by terms and conditions in the Earn Program. Therefore, all stablecoins deposited in the Earn Accounts by Celsius customers will be liquidated to meet the cost of bankruptcy proceedings.
The court did note that it does not take lightly the results of its decision on individual investors, as it is aware that this will have a deep impact on customers of Celsius Network. Therefore, customers will have to wait longer before receiving a refund from the bankrupt firm.
This ruling follows a motion filed by Celsius Network to extend the prior schedule for the Bar Date before Judge Glenn, to January 10, 2023, at 11:00 a.m. ET. The motion was meant to ensure that creditors and other parties in interest are provided with more time to submit their claims.
It is worth noting that the liquidation of stablecoins is only one of the measures Celsius Network has taken in order to cover the cost of bankruptcy proceedings. The company has also been trying to increase liquidity by selling other assets, such as tokens, to creditors and other parties in interest.
Despite the difficult situation Celsius Network is in, the company is still trying its best to make sure that customers get the best outcome from the bankruptcy proceedings. The company has been trying to negotiate with creditors in order to get better terms, and has also been providing technical assistance to customers in order to help them navigate the bankruptcy process.
It is yet to be seen what the outcome of the bankruptcy proceedings will be, but it is clear that the decision of Judge Glenn will have a deep impact on the customers of Celsius Network. It is important for customers to be aware of the situation and take the necessary steps to protect their rights and interests.