Custodial account holder with now-bankrupt crypto lender Celsius Will be able to get back 72.5% of their holdings, as long as they agree to a settlement plan.
The settlement plan has now been approved by Judge Martin Glenn in the US Bankruptcy Court for the Southern District of New York, and was shared with the public in a court filing. Admission Tuesday this week.
Custody account holders who choose to join the scheme will receive 72.5% of the crypto held in their custody accounts. The amount will be divided into two pay-outs, with 36.25% paid up front and 36.25% on resolution of the plan.
Details of the new settlement plan were shared by community members on Twitter, with one user who covered the Celsius bankruptcy extensively noting that the plan is optional for account holders who now have 30 days to review it. There are days.
The filing states that by agreeing to the plan, creditors are not permitted “to pursue any litigation, including relief from the automatic stay, turnover, or other claims or causes of action.”
Important to note is that the new settlement plan pertains only to custody account holders and not account holders in the so-called Celsius Earn program. The plan also excludes Celsius employees and other insiders.
Celsius filed for bankruptcy in July last year during the height of the turmoil in the crypto market, and filings at the time revealed a billion-dollar hole in the company’s balance sheet.
Founder of Celsius Alex Mashinsky resigned from his position as CEO of the company in September of the same year.