According to court documents, crypto lender Celsius Network has struck two settlements that would enable it to recover customers' property and put an end to its bankruptcy case.
Celsius To End Bankruptcy After Reaching Settlements and Return Assets to Customer
According to court documents, crypto lender Celsius Network has struck two settlements that would enable it to recover customers' property and put an end to its bankruptcy case.
The settlements cover unsecured claims worth $78.2 billion, and Judge Martin Glenn will review them at a hearing on August 10. One of the agreements increases consumers' reimbursements by 5% to satisfy claims regarding allegations of fraud and misrepresentation by Celsius management.
If they choose not to participate in the settlement, account holders will still be able to file their own claims against Celsius.
Customers who have money in Celsius' interest-bearing Earn program have a solution through the second installment. Customers who borrowed cryptocurrency funds will be eligible to obtain compensation in the form of shares of the new company that emerges from the bankruptcy procedures along with a percentage of their funds in cryptocurrency assets under the proposed agreement.
After announcing a halt to all withdrawals amid market instability brought on by the collapse of the Terra ecosystem, Celsius filed for Chapter 11 bankruptcy in July 2022. Alex Mashinsky, the former CEO of Celsius, was detained on July 13, 2023. He was charged criminally and civilly with fraud and intending to manipulate the market.
