The cryptocurrency industry has been busy with the sudden collapse of FTX, one of the top crypto exchanges (banks), for almost two months now. Many people still can’t get their money out of FTX, and another ruling is more bad news for people using exchanges.
Celsius, a popular crypto lending firm, filed for bankruptcy back in July and is still undergoing legal proceedings. Bankruptcy generally prioritizes investors getting their money back over customers getting their money back, and in the case, there isn’t much in the way of bank-adjacent laws forcing crypto exchanges to work differently.
The judge overseeing proceedings for Celsius, Martin Glenn, ruled that Celsius’ terms of use meant “the cryptocurrency assets became Celsius’s property,” according to The Washington Post. In other words, if you used Celsius, you agreed to give up control of your money by agreeing to the terms of service.
The ruling shouldn’t have a sudden effect across the entire industry — it’s a ruling about one specific company’s terms of service, not a court decision or new law about all crypto companies and exchanges. However, it’s possible the terms of…
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