The judge in charge of Celsius bankruptcy orders $50 million in cryptocurrencies to be returned to the crypto lending platform’s customers.
U.S. Bankruptcy Judge Martin Glenn ordered Celsius to return digital coins, which had a total value of $44 million as of September, to customers who used the platform as a custodial service (custody account), Bloomberg reported Wednesday night.
“I want this case to move forward. I want the creditors to get back as much as they can as soon as they can,” the judge said at a hearing on Dec. 7, 2022.
The injunction does not affect users who had assets placed in Celsius’ savings accounts, and the amount distributed represents a tiny fraction of the platform’s multibillion-dollar total owed to its customers.
It comes after an investigation determined that the cryptos held in custody accounts belong to their owner and not the bankrupt company.
A bankruptcy proceeding that is taking its course, recently, Celsius Network has obtained permission to sell the Bitcoin (BTC) it mines to help pay for some vital business expenses.
Celsius would also like to sell its stablecoins in order to continue operating.
In addition, Celsius recently auctioned off its GK8 custody platform. The sale was won by Galaxy Digital last week.