Celsius Will Return 72% Of Crypto To Account Holders• March 23, 2023 12:05 pm • Comments
Crypto lender Celsius Network had declared bankruptcy last year which caused many customers to be unable to access their digital assets.
Many had assumed that customers would lose 100% of all their crypto assets as a result of the bankruptcy, but it seems that there is now some good news.
It was just revealed that Celsius has received formal approval to let custody account holders receive around 72% of their crypto holdings.
While it is not the full amount, it is still positive that customers are able to retrieve some of their assets back as part of the bankruptcy process.
However, there are some conditions that they will have to accept in order to retrieve the 72% of assets back from Celsius.
Bankruptcy Court: The #Celsius Custody settlement is approved. Will be optional for customers. 30 days to review. Those who opt in will get 72.5% of their claim in two distributions 36.25% up front and 36.25% upon plan resolution (or at end of year).
— Cam Crews (@camcrews) March 21, 2023
They can claim up to 72.5% of their assets “free and clear,” which will be divided into two settlements of 36.25% each. The first settlement should be paid out by June 11, while the second should be made by Dec. 31 this year.
The opt-in form must be signed by April 24 at 5:00 pm ET.
Celsius, the committee of unsecured creditors and the custody ad hoc group were parties to the agreement.
The entry of the settlement approval order includes a requirement that settling custody account holders won’t pursue litigation, “including seeking relief from the automatic stay, turnover, or their claims or causes of action.”
Holders of custody accounts held assets that “were never in the Earn program or Borrow Program and were transferred directly into the Custody Program,” Celsius has said.
Therefore, it is important to sign this form by the deadline if a customer wants to retrieve a majority of their assets back.
This means that customers only have about 30 days to opt into this settlement and the payments to the customers will be divided into two separate payments.
Half will be refunded almost instantly and the other half will be done towards the end of the year which is not ideal, but is better than nothing.
The deal only applies to custody account holders which means that earn account holders would not be included.
Previously, the Judge had ruled that Earn account holders had basically signed over the rights to their crypto to Celsius back in January.
This indicates the importantance of owning the private keys to your crypto if you truly want to have control over your assets.
Celsius custody account holders can receive 72.5% of their crypto, says bankruptcy judge – Cointelegraph https://t.co/m9BSdJt8ql
— CryptoNewz (@cryptonewz_io) March 23, 2023
Customers who choose the court-approved refund plan have 30 days to voluntarily opt into the settlement.
“Custody Account Holders, including those with an outstanding loan owed to the Debtors through the Debtors’ Borrow Program, shall be afforded an opportunity to opt-in to the Settlement within 30 days […] of the entry of the Order in accordance with the procedures detailed […].
Once the Settlement is approved, the Debtors will be authorized to distribute to all Eligible Users the entire balance of their Withdrawable Custody Assets. “
The refund process will be sponsored by NovaWulf Digital Management, who will also provide equity in a new company, NewCo, for illiquid assets to the Earn customers who have been stiffed in the deal.
Bankruptcy Judge: Celsius Account Holders Can Retrieve 72.5% of Crypto Holdings, Permitted They Opt-In to Settlement Plan Cool Clan Club https://t.co/FD0MxYipKh
— Art_Hard (@Art_Hard_) March 23, 2023
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