Celsius’ former CEO, Alex Mashinsky, speaking at a 2019 Bitcoin conference in San Francisco. Mashinsky stepped down in September 2022, amid Celsius’ bankruptcy proceedings. He’s being sued for allegedly misleading investors by New York’s AG.
A bankruptcy judge has dashed the dreams of investors hoping to retrieve their crypto funds from Celsius. It turns out, assets placed in the now-defunct crypto exchange’s high interest “Earn Accounts” belong to Celsius, not the account holders, according to a Wednesday ruling from Judge Martin Glenn.
The decision came down to an “unambiguous provision” in one section of Celsius’ terms of use, wrote the judge. “All right and title to such Eligible Digital Assets, including ownership rights,” is held by Celsius, said version 8 of the company’s terms, which 99.86% of Earn Account holders agreed to, noted Glenn. Celsius’ incredibly shady terms of service also stated to signatories that “you may not have any legal remedies or rights,” to get your money back—which the company has previously argued protects them from legal complaints.
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In practice, Judge Glenn’s ruling effectively confirms that stance, and means the company has no immediate obligation to repay about 600,000 investors amid the