Celsius Bankruptcy Court Confirms That Customer Digital Assets Are Property of the Estate in Key Ruling

The bankruptcy court presiding over the Chapter 11 cases of digital asset platform Celsius Network LLC and its affiliates (Celsius) issued a key ruling on January 4, 2023 (the Decision), by concluding that a significant portion of digital assets held in Celsius’ customer accounts are property of the debtors’ estates, and holders of such accounts accordingly are unsecured creditors.

Filed under:
USA, Insolvency & Restructuring, IT & Data Protection, Litigation, Sidley Austin LLP, Blockchain
Authors:
Teresa Wilton Harmon , Stephen E. Hessler , Lilya Tessler , Dennis M. Twomey , Allison Ross Stromberg
Location:
USA
Firm:
Sidley Austin LLP
CFTC Proposes First Comprehensive Rewrite of Bankruptcy Rules Since 1983

How does one go bankrupt? Two ways — gradually and then suddenly.

(Paraphrase of Hemmingway, by way of CFTC Chairman Heath Tarbert)

Filed under:
USA, Banking, Derivatives, Insolvency & Restructuring, Sidley Austin LLP, Coronavirus, Commodity Futures Trading Commission (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA), Title 11 of the US Code
Authors:
Teresa Wilton Harmon , Nathan A. Howell , Alex R. Rovira , Michael S. Sackheim , Allison Ross Stromberg
Location:
USA
Firm:
Sidley Austin LLP