Some Celsius users may soon get their crypto back

Some Celsius users may soon get their crypto back

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Celsius is asking the court for permission to return crypto to the value of around $50 million belonging to custody accounts.

Some custody coins to be released

Most holders of crypto on the stricken Celsius platform stored their assets there in order to earn interest. However, a much smaller number of users put their crypto into Celsius’ custody accounts. 

According to an article today on Bloomberg, these users may have their crypto returned relatively soon, as the company has asked the judge presiding over the Chapter 11 bankruptcy case to agree to release around $50 million of the total $200 million in digital assets that are stored in custody.

Who owns the coins?

The rest of the assets that are stored in the custody part of the platform are still trapped, given that Celsius is disputing their ownership by claiming that users transferred their crypto from interest-bearing accounts over to custody accounts shortly before bankruptcy was declared.

Celsius is claiming that it is the owner of these coins, which the company asserted to Judge Martin Glenn in a hearing on Thursday. This is also the case for the great majority of users who stored their crypto on the platform in order to earn interest.

Dixon scathing of Celsius tactics

Simon Dixon, CEO of BnktotheFuture and a Celsius depositor, tweeted that the judge was not yet assured of the safety or whereabouts of the coins that Celsius said that it owns:

Dixon also tweeted his thoughts on the oft-stated slogan of Celsius CEO Alex Mashinsky, that “Banks are not your friends”.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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