Celsius To Return 72% of Crypto to Custody Account Holders

Custody account holders have until April 24 to opt in to the settlement agreement, which will be made in two distributions this year

article-image

mundissima/Shutterstock.com modified by Blockworks

share

Bankrupt cryptocurrency lender Celsius has received formal approval to let custody account holders receive more than 72% of their holdings.

US bankruptcy judge Martin Glenn granted a settlement agreement stating custody account holders will have to sign an opt-in form to receive the settlement payment, a filing, released Tuesday, showed. 

They can claim up to 72.5% of their assets “free and clear,” which will be divided into two settlements of 36.25% each. The first settlement should be paid out by June 11, while the second should be made by Dec. 31 this year. The opt-in form must be signed by April 24 at 5:00 pm ET.

Celsius, the committee of unsecured creditors and the custody ad hoc group were parties to the agreement. 

The entry of the settlement approval order includes a requirement that settling custody account holders won’t pursue litigation, “including seeking relief from the automatic stay, turnover, or their claims or causes of action.”

Holders of custody accounts held assets that “were never in the Earn program or Borrow Program and were transferred directly into the Custody Program,” Celsius has said.

Present or former employees, as well as insiders, are not allowed to partake in the settlement agreement, according to the filing. The meaning of the term “insider” derives from the description under Section 101(31) of the US bankruptcy code.

Glenn ordered the return of crypto worth $50 million to Celsius customers in December. “I want this case to move forward,” he reportedly said, adding that he wanted creditors to recover “as much as they possibly can as soon as they possibly can.”

Last month, Celsius chose NovaWulf Digital Management — after screening more than 130 bids — to help close out its restructuring scheme. Celsius estimates that more than 85% of its customers will be able to recover 70% of their claims in liquid crypto under the NovaWulf deal.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Launching cryptocurrencies the old fashioned way may soon make a return

article-image

Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug

article-image

NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.

article-image

EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down