Celsius has asked for permission to sell crypto on its balance sheet to pay bills.

US Bankruptcy Judge Martin Glenn will soon decide on the vexed question of the ownership of the coins deposited by customers with crypto lender Celsius for earning interest income. Celsius is in bankruptcy proceedings and has asked the court’s permission to sell $18 million of coins held on its balance sheet to pay for ongoing expenses. (Yahoo Finance)

The problem is: Who is the rightful owner of these coins, which were deposited with Celsius before its bankruptcy in July?

On Monday, Judge Glenn heard arguments on the matter and said it was critical to resolve the question of legal title of these coins. He said the outcome of the bankruptcy proceedings depended on it, and that potential bidders would need the same clarification about these assets.

Mounting legal bills

Glenn also said he had to take a decision soon in the context of the mounting legal bills at Celsius. Or “there will be a corpse left.”

“I am going to go ahead and decide who it belongs to,” Glenn said in the hearing. “The real issue is, how we can cut this enormous administrative expense and get to the goal line, to the exit?”

It is Celsius’s line that, as per the terms of service, customers signed over ownership of the coins when they deposited them in interest-bearing accounts. That is being disputed by creditors and certain US state attorneys general. The latter asserted that the terms of service were unclear and had changed over time.

What Glenn decides would have an impact on other crypto bankruptcies as well.

Related Story:  Celsius Goes Under Too, Files For Bankruptcy