Celsius Hits Important Deal, Users Can Get Compensation Later This Year

Key Points:

• Celsius has reached an important agreement to enable compensation for users who have money stuck on the platform.
• 30,000 customer complaints have been resolved, with a claim value of $78 billion.
• The company’s restructuring is scheduled for October, and customers can start receiving crypto and other assets later this year.

According to the Wall Street Journal citing court documents, bankrupt crypto lender Celsius Network has reached an important settlement that could clear the way for Celsius to get court approval to return assets to customers and end the bankruptcy process.

The agreements will address customer complaints about allegations of fraud by increasing withdrawal amounts by 5%

Reportedly, since the opening of the inquiry portal, a total of 30,000 customer complaints have been resolved, with a claim value of US$78 billion. The court will approve the settlement at an August 10 hearing.

The Wall Street Journal added that a confirmation hearing on Celsius’s restructuring is scheduled for October and that customers could start receiving crypto and other assets later this year.

While Celsius’ lawyers argue that Celsius owes customers no more than their deposits, some users have filed claims for misconduct by former management.

Earlier this month, the US Securities and Exchange Commission (SEC) filed a lawsuit in federal court against Celsius and its former CEO, Alex Mashinsky, accusing it of raising billions of dollars through fraudulent and unregistered sales, defrauding investors, and manipulating the price of its native token.

The company recently announced a $4.7 billion settlement with US government regulators over allegations of fraud. The charges against Mashinsky, filed by federal prosecutors, include securities fraud, merchandise fraud, wire fraud, and various other allegations of securities fraud and manipulation.

However, the company insists that the settlement will not have any impact on ongoing reorganization efforts or the amount it wants to recover for its customers. Celsius, which at one point held $30 billion in assets, filed for bankruptcy about a year ago.

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