In yet another blow to crypto investors, those that were participating in Celsius’ Earn program appear to have officially lost their funds that were held in Earn accounts. The ruling was handed down by Chief United States Bankruptcy Judge Martin Glenn in a memorandum opinion and order filed today regarding ownership of earn account assets.
The decision is said to be of a limited scope, and does not apply to “Custody Programs, Withhold Accounts, or Borrow Program, or whether any individual Account Holder has valid defenses to the contract between Account Holders and the Debtors.”
Included within the filing is details on just at how much is at stake in making the decision. Across 600,000 Earn accounts, there sits crypto worth approximately $4.2 billion, of which stablecoins amounted to just $23.0 million. Those holdings will now represent unsecured claims.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.