- More than 58,000 users deposited over $210 million collectively with Celsius’ custody
- Celsius owes billions of dollars to other users
Bankrupt crypto lender Celsius Network was ordered by a US bankruptcy judge to return crypto worth $50 million to custody account holders, Bloomberg reported late on Wednesday.
Celsius filed for bankruptcy in July in a series of similar filings by crypto lenders. The platform also filed to return custody account user funds in September before another hearing. This hearing addressed ongoing concerns about the lender’s efforts to restructure and restart operations.
Users deposited over $210m with Celsius
Details of the filing reveal that more than 58,000 users deposited over $210 million collectively with Celsius’ custody. 15,680 clients hold accounts known as “Pure Custody Assets,” in which there is about $44 million.
The case is overseen by the Bankruptcy Court for the Southern District of New York. The court had set a hearing to discuss the issue on October 6.
Celsius owes billions to users
The judge delivered the order verbally in a hearing yesterday. It affects an amount of crypto that was worth about $44 million in September last year. Celsius owes billions of dollars to other users, prompting measures to get out of debt.
The lender had argued that holders of custodial accounts still owed their funds unlike customers using its Earn or Borrow services. In the former case, Celsius was only holding the funds. Therefore, the funds are not part of Celsius’ estate; they belong to the users.
