Despite the fact that the refund may not be fast in all situations, the courts have declared that Celsius consumers are entitled to up to 72.5% of their deposited crypto back according to a historic ruling by Justice Martin Glenn.
Customers with Custodial accounts would be the only ones eligible for the deal. Because the court concluded in January that Earn account users had agreed to transfer their cryptocurrency to Celsius. Almost 600,000 Earn investors would not gain anything. Under this ruling, the failing cryptocurrency lender may keep up to $4.2 billion in assets. Out of which $23 million of which were stablecoins.
To put it in context, Celsius had only roughly $167 million in liquid assets when it filed for bankruptcy. It also said that it had assets of roughly $4.3 billion and liabilities of about $5.5 billion, with $4.7 billion attributed to obligations owed to consumers, or unsecured creditors as the company preferred to refer to them.
The January judgment by Judge Glenn significantly reduced Celsius’s obligations to around $1.3 billion. What’s more, roughly $144 million in legal expenses have been essentially financed by client deposits, further compounding the problem.
The remaining Earn customers may choose between obtaining approximately three-quarters of their money returned or continuing the lawsuit.
Those who want to get back all of their assets may still submit claims against Celsius, but those who want to obtain back a portion of their assets can now do so. Moreover, 36.5% of cryptocurrency deposits will be returned immediately, with the other 36.5% returned “upon plan resolution” or by the end of the year. Clients who want to participate in the court-mandated refund program have 30 days to voluntarily enroll in the settlement.
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