• Tue. Feb 27th, 2024

Embattled Crypto Lender Celsius Reaches Settlement to Resolve Claims Worth $78,000,000,000

Embattled Crypto Lender Celsius Reaches Settlement to Resolve Claims Worth ,000,000,000

Celsius Network and its account holders have reached a new agreement that could quickly settle more than 30,000 claims filed against the bankrupt crypto lender.

According to court documents filed July 20, many of the $78.2 billion worth of claims seek damages for fraud, misrepresentation and other non-contractual causes of action, and resolution is required before payouts can be distributed.

Instead of settling the issues, the parties agreed, subject to court approval, to increase the amount the claimants would receive to cover the alleged damages.

“Unless those claims are settled, creditors will have to withhold distributions to creditors that may be paid under the plan. If the settlement is approved, each account holder who does not waive the settlement will be awarded a 5% increase in their account holder claims (excluding custody claims)…

Complete litigation resolution of all non-contractual claims asserted against debtors would be a lengthy and costly endeavor that would significantly delay disbursements and ultimately alter any recovery.

The crypto lender, which offered customers high returns for investing their coins, froze customer withdrawals in June 2022, citing extreme market conditions. He filed for bankruptcy the following month.

Its founder, Alex Mashinsky, was arrested earlier this month and faces several charges, including securities, commodities and wire fraud.

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Featured image: Shutterstock/ex_artist

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