Celsius Asks to Return Some Customer Funds in Court Filing

[Markuri33]

The bankrupt company said it wants to return around $50 million in digital assets in “custody accounts.”“The debtors have identified significant cryptocurrency assets that they do not believe are property of their estates, and as to which the debtors do not believe that they have any colorable causes of action under applicable law,” Today’s filing said. “Accordingly, the debtors believe it is fair and appropriate to permit customers to withdraw those cryptocurrency assets at this time.”

Today’s notice came after custody customers asked a judge on Wednesday to have their funds returned to them separately from the bankruptcy proceedings.

In the filing, Celsius affirmed the need for caution in determining which assets to return, to whom, and when.

“Allowing customers to withdraw property that could be subject to later avoidance actions would be akin to choosing to drain a sink full of water, and then trying to collect the water after it had drained through the pipes,” the debt holders wrote. “Incredibly wasteful and inefficient if your goal is to maximize water for later allocation and distribution.more information