In a court order issued today by the United States Bankruptcy Court for the Southern District of New York, a motion filed by a former Celsius Earn account holder was denied.
As Celsius announces a recovery plan, customers try to recover funds.
gave The motion was denied The filing by Rebecca Gallagher was an attempt to obtain an order that would classify the assets in her Earn account as her property rather than Celsus’ bankruptcy estate.
The motion is the third of its kind to be rejected since July, when the major cryptocurrency lender filed for bankruptcy, affecting several well-known industry players as well as unwary consumers.
Although these motions are expressly denied, clients may still have the opportunity to recover their funds. According to CelciusFacts, a Twitter account that follows the case closely and provides important updates as they come to the joint Celsius’ New restoration planning.
The plan includes taking the company public in compliance with SEC regulations in the United States. The company aims to offer full and partial refunds to smaller customers, while offering a form of tokenized credit to larger customers.
$4.2 billion in user funds belong to Celsius.
Earlier on January 4, Chief Judge Martin Glenn, the same judge who denied the motion filed by Rebecca Gallagher, ruled that $4.2 billion worth of assets in the Celsius Earn program were frozen. Is. Bankruptcy belonged to a crypto lending platform.as opposed to clients who invested funds.
The decision, upheld by the United States Bankruptcy Court for the Southern District of New York when dealing with three motions filed by Celsius clients, was based on the platform’s terms and conditions. According to Judge Glenn, the language used in the company’s terms is straightforward and leaves no room for interpretation, invalidating any arguments made by the platform’s clients.
These Terms constitute a binding investment agreement, “governed by New York law,” meaning that ownership of funds transferred to Celsys as soon as they are locked into the Platform’s Earn program.
Celsius first announced liquidity problems in June 2022, unable to process customer returns due to “extreme market conditions”. The company filed for bankruptcy the following month. Since then, New York Attorney General Letitia James has made an announcement. The lawsuit against former CEO Alex Mashinsky To defraud investors.
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