A Year On, Crypto Loan Company Celsius Is Ready to Get Out of Bankruptcy

Liputan6.com, Jakarta Bankrupt crypto lending company Celsius Network reached two settlements that will allow the return of crypto assets to customers and end its bankruptcy proceedings, according to a report on July 20, 2023.

The settlement will be analyzed by Judge Martin Glenn at a hearing on August 10 and will deal with unsecured claims worth USD 78.2 billion or the equivalent of IDR 1,176 trillion (assuming an exchange rate of IDR 15,043 per US dollar). Any responses and objections must be submitted to the court by 3 August.

One agreement resolved claims for alleged fraud and misrepresentation by Celsius Network management by increasing customer recovery by 5 percent.

Account holders can still retain the right to bring individual claims against Celsius if they opt out of the settlement, according to court documents.

“Any eligible Account Holder who does not opt ​​out of this Settlement will receive a claim for 105 percent of their scheduled claim, which will supersede and eliminate the relevant Proof of Claim submitted by that Account Holder,” said the report, quoted from Cointelegraph, Monday (24/7/2023).

The second settlement offers a resolution for customers with funds in the Earn interest Celsius program. Under the proposed agreement, customers who borrow crypto funds will be able to receive a portion of their funds in crypto assets, along with compensation for new company shares emerging from bankruptcy proceedings.