Bankrupt crypto lender Celsius Network reaches crucial settlements to end bankruptcy proceedings
Bankrupt crypto lender Celsius Network has reached two crucial settlements to end its bankruptcy proceedings and clear a path for the return of customer assets, revealed court filings. Any responses or objections to the settlements must be submitted in court by the 3rd of August.
Key Points:
- Celsius Network filed for Chapter 11 Bankruptcy in 2022, and customers have been waiting for the outcome of its bankruptcy proceedings.
- The settlements reached will allow Celsius to return customer assets, pending approval from Judge Martin Glenn.
- A confirmation hearing on Celsius’ reorganization plan is scheduled for October.
- The first settlement addresses claims of fraud and misrepresentation by the previous Celsius management, offering increased customer recoveries.
- The second settlement addresses claims by customers with funds locked in Celsius’ interest-bearing Earn program, providing compensation in the form of crypto assets and shares in the new company post-bankruptcy.
Hot Take:
Celsius Network’s settlements bring hope to impacted customers, offering the potential return of their assets and a stake in the company’s future. However, the ongoing SEC lawsuit against Celsius and its CEO adds uncertainty to the situation. It remains to be seen if Celsius can navigate both the legal challenges and the reorganization process successfully.
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