The US court ruled that Celsius should own the crypto assets invested in the Earn product.
This move confirms that crypto platform customers do not own their assets if they use certain services or products.
Celsius Will Control Earn Assets
Judge Martin Glenn, the US bankruptcy judge in the Southern District of New York, in a court decision he gave; He said Celsius’ terms of service make it clear that it has seized ownership of crypto assets invested in the Earn product.
The court statement stated:
“Based on Celsius’s express Terms of Use and subject to any implied defense, the Court has concluded that crypto assets (including stablecoins) when deposited in Earn Accounts become the property of Celsius”
Celsius was holding approximately $4.2 billion in various cryptocurrencies in its Earn product as of July 2022, of which $23 million was in stablecoins.
Glenn also wrote that Celsius has a good business reason to authorize the sale of approximately $18 million worth of stablecoins, which state regulators and the US Trustee’s office are opposed to. Celsius planned to cover its administrative expenses for the next few months with the proceeds from the sale of these stablecoins.