Celsius Bankruptcy Judge To Refer UK Crypto Consultation Paper? Here’s Why

The chief U.S. bankruptcy judge who oversees Celsius case suggested that the Court could refer to UK crypto consultation paper. In a document filed on Monday, Judge Martin Glenn said there are no controlling legal precedents related to cryptocurrencies. He said the Court may consider the paper in cases involving cryptocurrency that may raise legal issues. Judge Glenn referred to the ‘Digital assets consultation paper‘ recently published by the Law Commission of England and Wales.

Addressing Legal Issues Around Crypto: Celsius Judge

In a document filed on Monday, the Chief United States Bankruptcy Judge Martin Glenn made a reference to the UK crypto consultation paper. The judge indicated that all parties in interest in the Celsius case have access to the consultation report. In the future the Court may consider the Consulation Report in connection with the legal issues in this case, he added. However, the judge acknowledged that UK based laws are not binding on courts in the United States.

“Many, or perhaps most, cases involving cryptocurrency may raise legal issues for which there are no controlling legal precedents in this Circuit or elsewhere in the United States or in other countries in which cases arise.”

Despite the lack of U.S. laws on crypto, the judge suggested that the UK crypto report may be considered in the Celsius case for reference. The report may be persuasive in addressing legal issues that may arise in this case in the future, he explained. Crypto lender Celsius filed for Chapter 11 bankruptcy in July this year amid massive withdrawals on the platform. The company had then froze customer accounts.

Recent reports suggested the company founder Alex Mashinsky withdrew $10 million few weeks before the user fund freeze. Customers of the crypto lender were pulling their assets in large numbers over concerns of its financial health.