According to an article, due to a court decision by Judge Martin Glenn, it is said that Celsius consumers may obtain up to 72.5% of their deposited cryptocurrency back. However the return may not always be immediate.
The January decisions by Judge Glenn effectively reduced Celsius’ liabilities to roughly $1.3 billion. Moreover, client deposits have also been used to effectively subsidize over $144 million in legal expenses.
Celsius Earn Customers Gradually Being Made Whole
Now, the remaining Celsius Earn customers have the option of receiving approximately three-quarters of their deposit back and continuing with their legal actions.
The return procedure will be supported by NovaWulf Digital Management, which will additionally offer shares in a new business, NewCo, to the Earn consumers who were taken advantage of in the trade in exchange for illiquid assets.
Notably, the offer would only be available to Custodial account holders. Due to a court decision made in January that Earn depositors signed over their cryptocurrency to Celsius, over 600,000 Earn such users would not benefit.
This ruling gave the defunct cryptocurrency lender ownership of up to $4.2 billion in assets, including $23 million in stablecoins.
It is important to look at the fact that the company had just nearly $167 million in liquid assets when Celsius filed for bankruptcy. Also, it stated that its debts totaled $5.5 billion, of which $4.7 billion was owed to consumers, or, as Celsius phrased it, unsecured creditors.
As per the tweet, Cryptocurrency deposits will get 36.5% of their money returned immediately, with the remaining 36.5% being paid out “upon plan settlement” or before the end of the year. The settlement has a 30-day voluntary opt-in period for customers who select the approved refund scheme.
Meanwhile, the Celsius Official Committee of Unsecured Creditors (UCC) tweeted that Celsius Network had an undisclosed amount of money in Signature Bank following its collapse.
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