As per the reports, a US bankruptcy judge ruled that Celsius Network owns the majority of cryptocurrencies deposited by customers on its online platform.
This means that most customers of Celsius will be last in line for repayment in the crypto lender's bankruptcy.
Judge Martin Glenn’s ruling will affect 600,000 accounts with $4.2 billion in assets when Celsius filed for bankruptcy in July.
Glenn wrote that the company does not have enough cash to fully repay those deposits.
This ruling means that most Celsius customers are given lower priority than those who had non-interest-bearing accounts and other secured creditors.
According to Glenn, Celsius’s terms of service made it clear that it took ownership of customer deposits in interest-bearing Earn accounts.
However, Glenn added that the ruling does not mean that Earn's clients "get nothing" nor does it stop further challenges to Celsius' ownership of crypto deposits.