Does Celsius Network OWN cryptocurrencies?

REUTERS/Dado Ruvic/Illustration Jan 4 (Reuters) - A U.S. bankruptcy judge ruled on Wednesday that Celsius Network owns most of the cryptocurrency that customers deposited into its online platform, meaning most Celsius customers will be last in line for repayment in the crypto lender's bankruptcy.

What is Celsius's role in crypto lending?

As of May, Celsius was one of the largest players in the crypto lending space with more than $8 billion in loans to clients and almost $12 billion in assets under management. The firm would lend customers’ crypto out to counterparties willing to pay sky-high interest rates to borrow it, and Celsius would then split some of that revenue with users.

What happened to Celsius Network?

Celsius Network, a crypto lending platform that once held $28 billion in assets under management, lost 88% of its assets in its mid-June crash, sending shock waves through the wider crypto world and prompting dozens of other crypto exchanges to freeze customer withdrawals. The firm filed for bankruptcy protection in July.

What is Celsius and how does it work?

Celsius is a crypto lending platform that has been around since 2017 and aims to give users yield on their crypto assets. This platform allows users to deposit their assets, which Celsius can then lend out to users who seek to borrow assets in the form of a loan. So why would someone want to lend or borrow crypto assets? Let us look at an example.