{"id":543654,"date":"2023-01-25T21:00:00","date_gmt":"2023-01-25T18:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/judge-denies-motions-from-celsius-users-seeking-to-reclaim-assets\/"},"modified":"2023-01-25T21:00:00","modified_gmt":"2023-01-25T18:00:00","slug":"judge-denies-motions-from-celsius-users-seeking-to-reclaim-assets","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/judge-denies-motions-from-celsius-users-seeking-to-reclaim-assets\/","title":{"rendered":"# Judge denies motions from Celsius users seeking to reclaim assets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4073b851857\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4073b851857\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/judge-denies-motions-from-celsius-users-seeking-to-reclaim-assets\/#%E2%80%9D_Judge_denies_motions_from_Celsius_users_seeking_to_reclaim_assets_%E2%80%9C\" >&#8221; Judge denies motions from Celsius users seeking to reclaim assets &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Judge_denies_motions_from_Celsius_users_seeking_to_reclaim_assets_%E2%80%9C\"><\/span>&#8221; Judge denies motions from Celsius users seeking to reclaim assets &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMGQyNGFlYmMtNTA4Yy00ZmY4LTk2Y2UtYzVlOTRkMGI2NDlkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>A judge overseeing bankruptcy proceedings for crypto lending firm Celsius Network has denied motions from three users with different claims on assets stuck since July.<\/p>\n<p>In orders filed with the United States Bankruptcy Court in the Southern District of New York on Jan. 25, Judge Martin Glenn <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174901252380000000038.pdf\">denied<\/a> a motion from Rebecca Gallagher, a Celsius claimant who argued her interest-bearing \u201cEarn\u201d assets on the platform were \u201cher property and not property of the bankruptcy estates\u201d under the control of the debtors. The judge <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174901252380000000039.pdf\">denied<\/a> similar motions from Celsius account holders Mark Benzaken and Kulpreet Khanuja.<\/p>\n<p>Motions from the three individuals included claims that Celsius\u2019 terms of use did not allow for transferring their assets from the platform to control of the debtors in the event of bankruptcy. Gallagher and Khanuja both called out Alex Mashinsky by name, claiming the former Celsius CEO misled customers with public statements and said users would retain full ownership of their assets, respectively.<\/p>\n<p>Judge Glenn said the court took the allegations against Mashinsky \u201cseriously\u201d but denied all three motions. In Khanuja\u2019s case, he said:<\/p>\n<blockquote><p>\u201cAny claim that Celsius breached its contract with Khanuja would not affect the ownership of cryptocurrency deposited in Khanuja\u2019s account. As the Earn Opinion explains, the cryptocurrency deposited in Earn Accounts became property of Celsius [&#8230;] the cryptocurrency in Khanuja\u2019s Earn Accounts was and remains property of the estate.\u201d<\/p><\/blockquote>\n<p>Louise Abbott, a partner at United Kingdom-based firm Keystone Law, told Cointelegraph in December that one legal tactic available to FTX users \u2014 the exchange is also going through the bankruptcy process in the U.S. \u2014 would be to claim their crypto and fiat assets \u201cremained their property at all times\u201d and shouldn\u2019t be under the control of the debtors\u2019 estates. Though Abbott was referring to FTX funds donated to third parties, the recent rulings in the Celsius case <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174901252380000000040.pdf\">suggested<\/a> its terms of use granted the platform \u201call right and title to such Digital Assets, including ownership rights\u201d.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bankruptcy judge orders $44M in crypto to be returned to Celsius customers<\/em><\/strong><\/p>\n<p>Celsius reported liquidity issues in June 2022 and blocked user withdrawals, citing \u201cextreme market conditions.\u201d The company later filed for bankruptcy in July. U.S. authorities have filed suit against Mashinsky for his role in the platform\u2019s downfall for allegedly giving \u201cfalse and misleading statements\u201d to investors and hiding the firm\u2019s \u201cdire financial condition\u201d.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/judge-denies-motions-from-celsius-users-seeking-to-reclaim-assets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Judge denies motions from Celsius users seeking to reclaim assets &#8220; A judge overseeing bankruptcy proceedings for crypto lending firm Celsius Network has denied motions from three users with different claims on assets stuck since July. In orders filed with the United States Bankruptcy Court in the Southern District of New York on Jan&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":543655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/0d24aebc-508c-4ff8-96ce-c5e94d0b649d.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[136596,4978,55229,70934,67874],"class_list":["post-543654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-celsius","tag-bankruptcy","tag-law","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=543654"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543654\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/543655"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=543654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=543654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=543654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}