The $4.2 billion that Celsius customers invested in the crypto-lender is missing, according to a court order.
He disclosed that their digital funds stored in interest accounts belonged to the bankrupt company.
Wednesday's ruling allows Selsey to pay $18 million to stay in Chapter 11 longer.
Thousands of Celsi customers lost ownership of the billions of dollars they had collectively invested in the now-defunct crypto lender.
A U.S. bankruptcy judge ruled Wednesday that up to $4.2 billion in customer funds belong to Celsius, meaning it can use them as it sees fit, the Wall Street Journal reported.
The decision will allow Celsius to sell $18 million worth of stablecoins to pay off its debts and stay out of Chapter 11 bankruptcy for longer. The creditors' chiefs had previously told the court they would otherwise be out of cash by March.
Affected customers are Celsius' 600,000 high-income users. According to the WSJ, the court called them unsecured creditors of the crypto-lender and said the company did not have enough assets to pay them all in full.
Celsius claimed that when they accept the account's terms of service, in some cases they refuse to hold deposits by clicking the apply button. Changes to the latest terms, the lender has threatened to freeze the accounts of anyone who disagrees.
Judge Martin Glenn said he "sympathizes with the frustration that account holders may feel when they do not read or understand specific terms of service".
According to Glenn, Celsius has provided strong evidence that more than 99% of its users agree to the latest terms for its interest accounts.
Celsius filed for bankruptcy protection in July after the cryptocurrency crash saw investors pull out of risky assets. As of May, the lender, which had about 12 million customers and $11 billion in assets, was managing a $1.2 billion gap on its balance sheet.
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