Judge rules Celsius owns funds in Earn accounts, paving the way for stablecoin sale
“As has been said repeatedly in this opinion, creditor’s rights with respect to various defense to and breach of contract claims are reserved. Creditors will have every opportunity to have a full hearing on the merits of these arguments during the claims resolution process.”
The court gave Celsius an extension to come up with a Chapter 11 restructuring plan by Feb. 15. Judge Martin ordered the return of $44 million worth of crypto held in customers’ custodial accounts on Dec. 7. Celsius declared bankruptcy July 14.
— Simon Dixon (@SimonDixonTwitt) January 4, 2023
The ruling makes reference to $18 million worth of stablecoins in the Earn program that Celsius had sought to sell, saying it should be allowed:
“In the exercise of its business judgment, the Debtors have established a good business reason to permit the sale.”
The United States Trustee and state securities regulators had argued against allowing that sale, saying Celsius already had the liquidity to operate “over the next few months.”