It was an unwelcome ruling for about 600,000 Celsius account holders, who are probably wishing they’d read the fine print more closely before investing. Or put more stock in the crypto mantra “not your keys, not your coins.”

Earlier this month, federal Bankruptcy Judge Martin Glenn found that when people deposited assets with the now bankrupt crypto lender Celsius - and in exchange received interest on those deposits  - those assets became the property of Celsius. This makes customers of the so-called Celsius “Earn Program” unsecured creditors - unlikely to get all their money back from Celsuis, (again because, well, bankruptcy).

Many investors signed up for these accounts in part because of the potentially high returns Celsius promised on their deposits -  up to 18 percent. That’s far more interest than you’d make at a savings bank. But unlike at a bank, the deposits, held in crypto, were not covered by federal deposit insurance.

To give some context, the value of those accounts back in July topped $4 billion.

This ruling could impact other crypto platform arrangements.

Bloomberg’s Jeremy Hill joins the episode to break down the judge’s opinion and explain its wider implications.

Subscribe to the Bloomberg Crypto Newsletter at https://bloom.bg/cryptonewsletter

This podcast is produced by the Bloomberg Crypto Podcast team: Supervising producer: Vicki Vergolina, Senior Producer: Janet Babin, Producers: Sharon Beriro and Muhammad Farouk, Associate Producers: Mo Andam and Ty Butler. Sound Design/Engineer:  Desta Wondirad.

It was an unwelcome<a href="https://www.nysb.uscourts.gov/content/re-22-10964-mg-celsius-network-llc-2"> ruling</a> for about 600,000 Celsius account holders, who are probably wishing they’d read the fine print more closely before investing. Or put more stock in the crypto mantra “not your keys, not your coins.”
Earlier this month, federal Bankruptcy Judge Martin Glenn <a href="https://www.nysb.uscourts.gov/sites/default/files/opinions/312902_1167_opinion.pdf">found</a> that when people deposited assets with the now bankrupt crypto lender <a href="https://celsius.network/">Celsius</a> - and in exchange received interest on those deposits  - those assets became the property of Celsius. This makes customers of the so-called Celsius “Earn Program” unsecured creditors - unlikely to get all their money back from Celsuis, (again because, well, bankruptcy).
Many investors signed up for these accounts in part because of the potentially high returns Celsius promised on their deposits -  up to 18 percent. That’s far more interest than you’d make at a savings bank. But unlike at a bank, the deposits, held in crypto, were not covered by federal deposit insurance.
To give some context, the value of those accounts back in July topped $4 billion.
This ruling could impact other crypto platform arrangements.
Bloomberg’s<a href="https://www.bloomberg.com/authors/ATsVYBQT7rw/jeremy-hill"> Jeremy Hill</a> joins the episode to break down the judge’s opinion and explain its wider implications.
Subscribe to the Bloomberg Crypto Newsletter at <a href="https://bloom.bg/cryptonewsletter">https://bloom.bg/cryptonewsletter</a> 
This podcast is produced by the Bloomberg Crypto Podcast team: Supervising producer: Vicki Vergolina, Senior Producer: Janet Babin, Producers: Sharon Beriro and Muhammad Farouk, Associate Producers: Mo Andam and Ty Butler. Sound Design/Engineer:  Desta Wondirad.

In this daily podcast, Bloomberg’s reporting team teases out what’s actually important in the crypto conversation. Led by crypto editor stacy-marie ishmael, the show draws on reporters and editors around the world and credible voices from across the industry. Episodes cover everything from regulation to NFTs to DeFi to the environmental considerations surrounding an asset class shaping the future of finance.

In this daily podcast, Bloomberg’s reporting team teases out what’s actually important in the crypto conversation. Led by crypto editor stacy-marie ishmael, the show draws on reporters and editors around the world and credible voices from across the industry. Episodes cover everything from regulation to NFTs to DeFi to the environmental considerations surrounding an asset class shaping the future of finance.

Bloomberg Crypto

Digital tokens like Bitcoin and NFTs have moved from niche products to showing up in Super Bowl commercials and song lyrics. Advocates of these new asset classes promise they will democratize the finance industry, and they hail the blockchain technology that backs it all as the future of computing. Skeptics say it's another financial house of cards. Bloomberg journalists will help cut through all the noise and provide clarity, context and authority.

In this daily podcast, Bloomberg’s reporting team teases out what’s actually important in the crypto conversation. Led by crypto editor stacy-marie ishmael, the show draws on reporters and editors around the world and credible voices from across the industry. Episodes cover everything from regulation to NFTs to DeFi to the environmental considerations surrounding an asset class shaping the future of finance.

Digital tokens like Bitcoin and NFTs have moved from niche products to showing up in Super Bowl commercials and song lyrics. Advocates of these new asset classes promise they will democratize the finance industry, and they hail the blockchain technology that backs it all as the future of computing. Skeptics say it's another financial house of cards. Bloomberg journalists will help cut through all the noise and provide clarity, context and authority. In this daily podcast, Bloomberg’s reporting team teases out what’s actually important in the crypto conversation. Led by crypto editor stacy-marie ishmael, the show draws on reporters and editors around the world and credible voices from across the industry. Episodes cover everything from regulation to NFTs to DeFi to the environmental considerations surrounding an asset class shaping the future of finance.

Who Owns Your Coins?

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/ccf6bef0-cebb-4b0e-9ae9-af89017df6b9/transcript