I sat through the Celsius bankruptcy hearing on Wednesday to learn the fate of the Celsius Custody and Withhold accounts. I passed my notes along to David. Our coverage is on his blog. [David Gerard]
This hearing was very technical with lots of lawyer details and bankruptcy details But we think we have the issues explained.
The judge wants Celsius to open withdrawals for “pure” Custody accounts and for Custody accounts below $7,575 because these aren’t subject to preference claims — but everything else is!
Judge Martin Glenn is still mulling over the Withhold account situation.
Phase II will be a doozy. That’s when the parties argue clawbacks on customer withdrawals in the 90 days before filing.
Image: Scrooge McDuck