A federal judge ruled that customers of Celsius’s interest-bearing “Earn” product had given the bankrupt crypto lender control of their assets, making them part of the company’s bankruptcy estate. In a court order issued Wednesday, Judge Martin Glenn, the chief U.S. bankruptcy judge for the Southern District of New York, stated that Celsius’s terms of service made it clear that it took possession of crypto assets deposited into its Earn product, dealing a blow to some customers hoping to recoup their funds from the company. As of July 2022, Celsius had approximately $4.2 billion in various cryptocurrencies in its Earn product, with stablecoins accounting for $23 million of that total.
