At the hearing on Wednesday, US Bankruptcy Judge Martin Glenn ordered Celsius Network LLC to return cryptocurrency worth $50 million to users.
The judge has asked Celsius to return those coins which were worth $44 million in September. It’s a small portion of the billions of dollars of coins owed to Celsius users.
Glenn also ordered Celsius Network to return some coins that had been moved from interest-bearing accounts to custody accounts right after the firm’s bankruptcy filing. This particular order is for transfers that are under $7,500.
“I want this case to move forward,” Glenn stated. He went on to say, “I want creditors to recover as much as they possibly can as soon as they possibly can.”
The move comes after Celsius advisers and several stakeholders decided that coins placed solely into so-called custody accounts belong to users and not to the bankrupt company.
However, the legal treatment of coins in interest-bearing accounts, which constitutes the majority of Celsius’ assets, has yet to be decided. Celsius has also requested the judge for permission to sell the $18 million worth of crypto to keep the business running and paying bills.
Previously, US regulators had also set a “Bar Date: for those affected by the Celsius Bankruptcy and asked the customers to file a proof of claim against the company.
