Goodwin Procter: Who Owns Digital Assets When a Cryptocurrency Platform Files Bankruptcy? The Terms of Use Answer the Question | Practical Law

Goodwin Procter: Who Owns Digital Assets When a Cryptocurrency Platform Files Bankruptcy? The Terms of Use Answer the Question | Practical Law

This Goodwin Procter memorandum discusses the January 4, 2023 decision of the Bankruptcy Court for the Southern District of New York in In re Celsius Network LLC, (Bankr. S.D.N.Y. Jan. 4, 2023), in which it held that terms of use governing the debtor's yield-earning "Earn" program created a valid, enforceable contract that transferred ownership of cryptocurrency held in Earn program accounts from account holders to the debtors and that the debtors are authorized to sell stablecoins held in those accounts under section 363(b) of the Bankruptcy Code. Click here to view the full text.

Goodwin Procter: Who Owns Digital Assets When a Cryptocurrency Platform Files Bankruptcy? The Terms of Use Answer the Question

by Goodwin Procter LLP
Law stated as of 04 Jan 2023 • USA (National/Federal)
This Goodwin Procter memorandum discusses the January 4, 2023 decision of the Bankruptcy Court for the Southern District of New York in In re Celsius Network LLC, (Bankr. S.D.N.Y. Jan. 4, 2023), in which it held that terms of use governing the debtor's yield-earning "Earn" program created a valid, enforceable contract that transferred ownership of cryptocurrency held in Earn program accounts from account holders to the debtors and that the debtors are authorized to sell stablecoins held in those accounts under section 363(b) of the Bankruptcy Code. Click
here
to view the full text.