In a recent hearing, Martin Glenn ordered the embattled crypto-lending firm, Celsius to return funds that were not part of its earning accounts.
The order only applies to custody assets that are untouched by Celsius’ Earn account.

As of Dec 7, Celsius Network was ordered to return customers’ cryptocurrency that did not reach its interest-bearing accounts by U.S. bankruptcy judge Martin Glenn.

The $44 million in question represents a small fraction of the billion in crypto that Celsius owes its customers. Celsius also had a whopping $200 million in custody accounts, most of the money was moved from the yield-bearding accounts just before initiating voluntary Chapter 11 bankruptcy.

Celsius may be able to claim ownership of some of it due to preferential transfer rules, reported Bloomberg. There was around $11 million in this category, according to the court documents.

In its bankruptcy filing, Celsius revealed it had between $1 billion and $10 billion in liabilities and more than 100,000 creditors.

On Dec. 2, Mike Novogratz’s Galaxy Digital announced that it will acquire the Celsius-owned custody platform GK8, which is to be sold as part of bankruptcy proceedings.

#CELSIUS HEARING LIVE: They will adjust the KERP motion to take into account withdrawals and transfers into custody by these KERP employees. Headcount currently is 170 employees net ~20 that are still in the process of leaving. Judge Glenn is reading out the whole ruling.

— Simon Dixon (@SimonDixonTwitt) December 5, 2022

On Dec. 6, Celsius won an extension on its exclusivity period for the right to submit a Chapter 11 reorganization plan until Feb. 15. The firm stated

We intend to use this time to continue developing a plan for a stand-alone business, as we explore all value maximizing opportunities available to us, for the benefit of our customers and other stakeholders.

Brief Celsius Background

As reported by Crypto-newsmedia, On June 12, 2022, Celsius paused its withdrawals, and in July, the company filed a Chapter 11 bankruptcy protection.

A video leaked from Celcius executives suggests that the firm might try to leverage an IOU crypto for them to pay back investors. In the leaked video, Celsius leadership says that the employee’s funds will be subject to the same rules and timeline as customer assets.

Later on, Alex Mashinsky publicized his resignation from his post as the CEO of Celsius. The celsius network is a bankrupt cryptocurrency lending company. Alex Mashinsky is the co-founder and CEO of Celsius. It was founded in 2017 and is headquartered in the United States.

The bonuses will be payable to select employees and are intended to ensure their employees remain with the firm so that it may continue its limited business operations.

Celsius employees have been quitting in droves, with only 170 remaining with the firm compared to the 370 it had when it first started the bankruptcy proceedings.

Celsius users have criticized the platform for how they believe the project has mismanaged its funds following the collapse of the Anchor Protocol on the now-named Terra Classic blockchain.