Celsius asks the Court for permission to pay 50 million USD to customers of the company's custodial funds

The now-bankrupt crypto lender Celsius Network is looking to return funds to a portion of users who had their accounts locked.

Celsius asked the Court for permission to pay $ 50 million to customers of the company's custodial funds to release approximately $50 million worth of crypto trapped on the platform under custodial accounts, designed to store crypto rather than generate profits. According to court documents, a full hearing on the request is scheduled for October 6.

This move shows a certain 'split' among the thousands of users who were severely affected by the fall of Celsius as custodial customers are likely to get paid first. According to Celsius, crypto depositors with the goal of making signed interest transfer ownership of their funds to the company, while the department that only stores their assets on the platform technically retains ownership. entirely his property.

 

Even so, the roughly $50 million Celsius is looking to pay is currently only a fraction of the more than $200 million stuck in custodial accounts on the platform. That's because many users moved their holdings from interest-bearing accounts to custodial arrangements shortly before the bankruptcy, which could have allowed Celsius to claim the funds. .

However, this is considered Celsius's latest effort on the way to compensate as much as possible to users after bankruptcy, despite the company's financial situation falling into a state of "thousands of pounds". hanging a hair" when it will run out of money to operate in October as well as the legal barriers "encircling" the company are increasingly serious internationally due to the news that Canada's second largest pension fund has a heavy loss, at risk. empty-handed because of Celsius.

However, with the decision to allow Celsius to sell the mined Bitcoins from the Court in August 2022, Celsius can hope to buy more time to resolve the issue. In related developments, Ripple is said to be considering acquiring Celsius' assets to expand the company's position and help support the company during difficult times.

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Sep 02, 2022

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