- Judge Martin Glenn’s decision, would affect a very tiny portion of the total client money.
- Just 15,680 consumers held around $43.87 million in “Pure Custody.”
An American bankruptcy court overseeing the insolvency of cryptocurrency lender Celsius Network has directed the return of about $44 million in digital currency.
Judge Martin Glenn’s decision, as reported by Bloomberg, would affect a very tiny portion of the total client money kept by Celsius that has never been used in the company’s primary interest-bearing loan programme.
Held Funds in Pure Custody
Moreover, recent court documents reveal that around 58,300 consumers had assets totaling $210.02 million in the company’s interest-bearing Earn Program and Borrow Program. However, over that time period, just 15,680 consumers held around $43.87 million in “Pure Custody.” For the latter group, the bankruptcy judge has ordered a complete refund.
“Pure custody” would encompass users Celsius’ Custody and Withold Accounts, which basically operated as crypto wallets. However, owing to regulations around “preferential transfers,” only customers who kept their assets in “Pure Custody” the whole time would get a full return on their initial investment.
Moreover, a maximum of $7,575 is slated to be returned to customers who switched from interest-bearing services with Celsius to “Pure Custody” after the business’s various financial troubles became obvious, a time that the filing deems to be 90 days before the firm filed bankruptcy on July 13.
Furthermore, the petition indicates that the aforementioned circumstance will have an effect on about $11 million worth of cryptocurrency. According to a corporate notice, those who were negatively affected by Celsius’s downfall and who had funds in any of the services they provided had until January 3 to make a claim.
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