Celsius Shares Update on Court Decision Covering Customer Claims
The bankrupt crypto lending firm Celsius has shared updates on the latest court decision dealing with customer claims. On the official Twitter channel of the company’s committee related to unsecured creditors, the firm disclosed the details of the decision taken by Judge Glenn on the matter.
The platform stated that the judge has permitted the consumers to assert the crypto and contract-related claims just against Celsius Network LLC. The company added that the decision of the court does not stop consumers from asserting their non-contract claims. These claims take into account negligent misrepresentation, fraud, or the rest of the common law-related or statutory claims against the debtors.
1-Important bar date update…
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) March 27, 2023
Celsius Debtors Renew the Bar Date in Line with the Latest Court Ruling
In addition to this, the firm also mentioned that the debtors presently renewed the bar date while keeping in view the court ruling. In this way, the new deadline is the 28th of April for the submission of proof of claim in line with the court ruling. Recently, the platform disclosed that it has reached a contract with the UCC and the Custody Ad Hoc Group regarding a settlement. As a result of that, the majority of the Custody Program-based digital assets would be returned to those account-holding parties who favoured the settlement.
Custody consumers supporting the settlement will get a cumulative of up to 72.5% of the digital assets existing in the Custody Program. In a recent blog post, Celsius noted that eligible people will get an email sent by Stretto. Along with this, they will also obtain an exclusive PIN to be utilized later on in line with further instructions.
Clients Require Agreeing with Chapter 11 Plan to Take Part in Settlement
The company also elaborated in the update that the assets of the customers will remain on Celsius. Consumers will be offered a chance to consent to the Settlement for another time in line with the platform’s chapter-11 plan. The holders of custody accounts, in line with the settlement, will get the initial 50% of the settlement (nearly 36.25%) after the completion of the 30 days.
The assets to be extracted will be provided almost 15 days following the denouement of the 30-day opt-in times. The firm also clarified that the respective settlement is only eligible for the consumers of the custody accounts. Hence, to take part in the settlement, the users will require agreeing to vote their custody claims to support the chapter-11 strategy of the debtors.
