Celsius Network, a bankrupt crypto lending firm, on Thursday, filed to return funds to crypto custody holders who are locked out of their accounts, Bloomberg reported.
Celsius asked a US bankruptcy judge for permission to release about US$50 million worth of cryptocurrency stuck on the platform in so-called custody accounts, which were designed to store digital coins rather than generate returns.
A full hearing on the request is scheduled for October 6. That is according to court papers from the Bankruptcy Court for the Southern District of New York, which is overseeing the case.
The move indicates a split among the many thousands of users adversely impacted by the company's bankruptcy.
The point is that unlike Celsius customers using its Earn or Borrow products, customers with custodial accounts still maintain ownership of their crypto assets. Celsius is just acting as the storage provider. These funds, therefore, belong to the customers, not to Celsius' resources.
Celsius has...
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