Significant Settlements Reached With Regard to Lawsuits Filed Against Celsius Network
Celsius Network, which just declared bankruptcy, has made substantial agreements to repay its creditors.
As a result of these agreements, Celsius Network may be able to get the bankruptcy court to approve its proposal to restore assets to consumers and end the case. Payment to consumers is due annually by December 31st per the terms of the agreements.
One of the agreements brings recovery up by 5% and settles consumer claims against former Celsius management for fraud and deception. Court records filed on Thursday by Celsius’ attorneys state that the settlement resolves 30,000 lawsuits seeking $78 billion in damages.
Supposedly, by the end of the year, consumers will begin getting compensation in cryptocurrencies and other assets after the settlements and a hearing on Celsius’ reorganisation of arrangement are granted before US Bankruptcy Judge Martin Glenn in October.
With the second agreement, the crypto company’s two main client groups may now rest easy: those who keep their money in high-interest accounts and those who borrow money in fiat currency. The collection of debtors had already asked those with high-interest accounts to treat them more kindly. When a loan is repaid in full, the borrower receives back the cryptocurrency originally pledged as security.
A group of investors headed by TechCrunch co-founder Michael Arrington have proposed a plan to restructure the crypto lender Celsius, which includes returning part of the customers’ coins and paying them with shares of a new firm that evolved from the crypto lender. The new entity will oversee the Bitcoin mining operation and other non-liquid assets owned by Celsius. At a hearing on August 10, Celsius will ask the court to approve the agreements.