Celsius Network Reaches Settlements in Bankruptcy Case
The bankrupt crypto lender, Celsius Network, has reached settlements that may lead to court approval to return customer assets, according to the Wall Street Journal. The agreements would increase recoveries by 5% and potentially settle 30,000 claims seeking $78 billion. Court approval for the settlements is expected on August 10th, with a confirmation hearing on Celsius’ reorganization plan set for October. Disbursements of crypto and other assets could begin before the end of the year. However, the Securities and Exchange Commission (SEC) recently sued Celsius and its former CEO, Alex Mashinsky, alleging fraudulent and unregistered sales, investor deception, and price manipulation of a native token. Celsius filed for bankruptcy a year ago, with $30 billion in assets at the time.
Key Points:
- Celsius Network has reached settlements in its bankruptcy case.
- The settlements would raise recoveries by 5% and potentially resolve 30,000 customer claims seeking $78 billion.
- Court approval for the settlements is expected on August 10th.
- A confirmation hearing on Celsius’ reorganization plan is set for October.
- Disbursements of customer assets could begin before the end of the year.
Hot Take:
The settlements reached by Celsius Network provide hope for customers who have been seeking the return of their assets. With the potential resolution of thousands of claims and an increase in recoveries, customers may finally see some relief. However, the recent SEC lawsuit against Celsius and its former CEO raises concerns about the company’s past actions and integrity. The outcome of the lawsuit could have significant implications for the future of Celsius and its ability to regain the trust of its customers and the wider crypto community.
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