Chief Judge May Look To UK Consultation Paper for Celsius Case

Chief Judge May Look To UK Consultation Paper for Celsius Case

• Chief Judge Martin Glenn claimed the court may refer to the UK’s “Digital Assets Consultation Paper”.
• Judge Glenn mentioned that there are no legal principles for crypto cases.
• The court could refer to the UK’s legal principles for the Celsius Bankruptcy Case.

Yesterday, the Chief Judge of the US Bankruptcy Court for the Southern District of New York, Martin Glenn claimed that the court may refer to UK’s “Digital Assets Consultation Paper” to oversee the Celsius bankruptcy.

Judge Glenn stated that cases involving cryptocurrency may raise legal issues. The Chief Judge mentioned that there are no controlling legal precedents in the Southern District of New York or anywhere else in the US for crypto cases, like the Celsius bankruptcy.

In the filing, Chief Judge Martin Glenn stated:

Recently, the Law Commission of England and Wales published a ‘Digital Assets: Consultation Paper,’ addressing many legal issues arising in cases involving digital assets. The Consultation Paper explains that The Law Commission was set up by section 1 of the Law Commissions Act 1965 for the purpose of promoting the reform of the law.

According to the filing, Judge Glenn stated that the Consultation Paper explains the Topic of the consultation as: “Proposals for law reform in respect of certain digital assets as objects of property rights”, which is over 500 pages.

Moreover, Judge Glenn explained that legal principles from the UK are not binding in the US. But, for the Celsius bankruptcy or any case regarding crypto, the court could refer to the Consultation Report in the future.

For the uninitiated, crypto lending platform Celsius filed for Chapter 11 bankruptcy on July 13 after halting withdrawals on June 13. Last week, Celsius Network Ltd. was under investigation by US authorities and various federal regulators.

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