Per Reuters

Celsius' bankruptcy left approximately 600,000 customers furious, and now, a judge ruling has stated that Celsius Network owned most of the crypto deposited by customers.

The ruling notes that while some customers will be able to receive a 100% repayment for their deposits, not everyone will be able to experience this situation. Per US Bankruptcy Judge Martin Glenn in New York, some customers will receive "only a small percentage" of deposits.

There were 12 US states and the District of Columbia, that shared the same sentiments and objected to the bid by Celsius to claim digital assets. The argument was that it remained unclear if customers understood what they were getting into when it came to the terms of service.

The ruling notes that Celsius did not fail to make it clear that they owned customer deposits within a specific account. Crypto deposited into their Earn account was reportedly owned by Celsius, as indicated in its terms of service.

As explained, those depositors of the crypto lender's Earn accounts would be treated as unsecured creditors, which means they will have the last priority in the bankruptcy proceedings of repaying those affected.

Glenn: "The Court does not take lightly the consequences of this decision on ordinary individuals, many of whom deposited significant savings into the Celsius platform,"

Part of the ruling includes the authorization of Celsius' sale of about $18 million stablecoins from the Earn accounts. In contrast, a smaller group of customers not in the Earn account were entitled to deposit returns.

Here are the type of customers that will be prioritized in the bankruptcy refunds:

Customers in custody accounts that don't bear interests.
Customers that did not comingle their crypto with the assets of Celsius.
Customers who had accounts that were too small. They are small enough that they couldn't be used by Celsius to repay other customers.

See flow at unusualwhales.com/flow.

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Reuters