The third bankruptcy hearing of Celsius inclined toward clients’ relief

• The bankruptcy hearing of Celsius on Thursday was mainly focused on custodial account holders.
• No, any final conclusion was made during Thursday’s hearing.

The clients of celsius network want their money to be refunded till now, but a judge seems to be very slow at sanction withdrawals. 

The hearing on Thursday, which was stretched to three hours, was primarily centered on whether custodial account holders should get their money back and whether the eligibility of custodial account holders to be allowed. The clients of the company think that any custodial account holder is able to get their funds back.

Celsius believes that only “pure” custodial account holders qualify, and the clients who firstly deposited their money in the Earn product and, after some time, transferred to custody are not qualified.

The credit is prominent as the lender filed for Chapter 11 bankruptcy protection. Just after 89 days, it launched its custodial wallets to clients. Funds were transferred 90 days earlier to the company’s filing for bankruptcy, perhaps subject to recovery under U.S policy. 

Celsius investors were doubtful of the timing of the filing. However, the lawyer backing Celsius refused that it was intended, explaining that there was no planning. 

The Judge for this bankruptcy case, Martin Glenn, didn’t make a judgment on this matter and attempted many times to put an end to the complementary debates on the matter.

Next two hearings.

In an interview, the director of Blockchain Business Development at OneOf, Eric Mendelson, said that the Judge is avoiding or delaying the deal with the problem. “He wants the offer of the company and descriptive decision request unified and a court date set to solve this particular problem.”

The Other hearing for this matter is arranged on September 14. However, the Judge also advised a different session to talk out the dissimilarities may be helpful.

After this, another hearing is also arranged on October 6 to talk about the custody account holders. The company and the custody account holders will make an offer further from the analysis.

Public prosecutors also debated on to what level the customer information would be publicized as the case headway.

In the beginning, Judge Glenn disagreed with the laundering email address of the creditors and the home address of the public document but eventually eased after listening to the debate on the cybersecurity risks. 

No, any final conclusion was made during Thursday’s hearing.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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