Celsius creditors demand crypto return amidst bankruptcy as ETH sales fuel suspicions of prioritizing corporate needs.

Celsius creditors have pressed for the return of their crypto during the lender’s bankruptcy, while separate court rulings have distinguished between account types and ownership rights. In particular, a bankruptcy judge ordered Celsius to return about $44 million in crypto to customers with certain custody accounts, reflecting the court’s view that those assets were not part of the estate in the same way as funds in Celsius’s Earn program. The dispute matters because Celsius’s Terms of Use and account structure determined who legally owned deposited crypto, and therefore who could claim it in bankruptcy. Earlier rulings found that Earn deposits belonged to Celsius, allowing the company to sell assets from those accounts to fund operations and bankruptcy expenses, while custody-style accounts were treated differently, creating a split outcome for creditors depending on the product they used. Celsius later emerged from Chapter 11 and began distributing more than $3 billion in crypto and fiat to creditors, showing that these ownership fights directly shaped how much customers recovered and how quickly.

✨ AI-generated background, compiled from web sources — not editorial content.

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