A federal judge will soon decide whether depositors at Celsius Network LLC gave up ownership of their cryptocurrencies in exchange for interest payments, a key legal issue that could echo through other crypto bankruptcies.
Celsius has asked for US Bankruptcy Judge Martin Glenn’s permission to sell $18 million of crypto on its balance sheet to keep paying its bills while it works on a way to repay creditors. But the coins in question came from Celsius users, who put the assets into interest-bearing accounts prior to the company’s Chapter 11 bankruptcy in July.
That means Glenn must decide whether ...
