Celsius is asking the court for permission to return Cryptocurrency worth around $50 million that is in custody accounts.
Some custody coins are set to be released
Most Cryptocurrency holders on the stricken Celsius platform kept their assets there to earn interest. However, a much smaller proportion of users deposited their Cryptocurrency in Celsius’ custody accounts.
According to a Bloomberg article published today, 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 approximately $50 million of the total $200 million in digital assets held in custody.
Who owns the coins?
The rest of the assets stored in the custody section of the platform are still trapped, as Celsius claims that users transferred their Crypto from interest-bearing accounts to custody accounts shortly before the bankruptcy was declared.
Celsius claims ownership of these coins, which it asserted to Judge Martin Glenn in a hearing on Thursday. This is also true for the vast majority of users who stored their Cryptocurrency on the platform to earn interest.
Dixon scathing of Celsius tactics
Simon Dixon, CEO of BnktotheFuture and a Celsius depositor, tweeted that the judge was not yet satisfied with the safety or location of the coins that Celsius claimed to own:
Dixon also tweeted his thoughts on Celsius CEO Alex Mashinsky’s oft-stated slogan, “Banks are not your friends.”