- Custody account holders with the now-bankrupt crypto lender Celsius will be able to get back 72.5% of their holdings, as long as they agree to a settlement plan.
- The settlement plan has been approved by Judge Martin Glenn in the US Bankruptcy Court for the Southern District of New York and will be paid in two installments.
- Celsius filed for bankruptcy during the height of the turmoil in the crypto market in July last year, and its CEO Alex Mashinsky resigned from his position in September.
Background on Celsius
Celsius is a now-bankrupt crypto lender which saw its CEO Alex Mashinsky resign from his position during the height of turmoil in the crypto market back in July 2020. This filing revealed that there was a billion-dollar hole in Celsius’ balance sheet.
Settlement Plan Approved by Judge
Judge Martin Glenn from US Bankruptcy Court for the Southern District of New York recently approved a settlement plan allowing custody account holders to receive 72.5% of their holdings as long as they opt into this plan. The amount will be split into two pay-outs, with 36.25% paid up front and 36.25% upon resolution of the plan. However, this does not apply to those who are part of Celsius Earn program or any employees or insiders at Celsius.
Review Period for Account Holders
Account holders now have 30 days to review and decide whether or not they want to accept this proposed agreement. If accepted, creditors are not allowed to pursue any litigation regarding their claims against Celsius such as relief from automatic stay, turnover or other causes action.
“Opting In” Agreement Details
By opting into this agreement, creditors can expect:
- (1): Receive 72.5%of their holdings split into two payments (36.25% up front and 36.25% upon resolution).
- (2): Not able permitted seek any litigation including seeking relief from automatic stay, turnover or other claims or causes of action againstCelsius.
“Opting Out” Agreement Details
Those who choose not to accept this agreement may still pursue further legal actions against Celsius but may end up receiving less than what is offered through this settlement agreement if successful.