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Celsius Settlement Agreement with Unsecured Creditors Reached

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On March 29, the Official Committee of Unsecured Creditors of Celsius (UCC) tweeted that Celsius, UCC, and the Account Retention Team had reached a settlement agreement to provide

Celsius Settlement Agreement with Unsecured Creditors Reached

On March 29, the Official Committee of Unsecured Creditors of Celsius (UCC) tweeted that Celsius, UCC, and the Account Retention Team had reached a settlement agreement to provide creditors who chose to “withhold” accounts with a 15% physical distribution of cryptocurrency, and the rest would be treated as Earn’s claims in the plan. The hearing to approve the joint motion for the relevant application will be held on April 18, 2023.

Celsius reaches a settlement agreement with creditors and depositors holding accounts

On March 29, the Official Committee of Unsecured Creditors of Celsius (UCC) tweeted about a settlement agreement reached between Celsius, UCC, and the Account Retention Team. Creditors who chose to “withhold” accounts will receive a 15% physical distribution of cryptocurrency, with the rest being treated as Earn’s claims in the plan. The joint motion for the application will be heard on April 18, 2023.

Settlement Agreement Details

The settlement agreement reached between Celsius, UCC, and the Account Retention Team is aimed at providing relief to creditors who have been affected by the bankruptcy filing. The agreement provides for a 15% physical distribution of cryptocurrency to creditors who chose to “withhold” accounts. The remaining amount will be treated as Earn’s claims in the plan. The joint motion for the application will be heard on April 18, 2023, for the agreement to be approved.

Background of Celsius and UCC

Celsius is a blockchain-based platform that offers financial services and products to its clients. The platform offers its clients interest on deposits of cryptocurrency, flexible loans, and other financial products. UCC, on the other hand, is a committee that represents the interests of unsecured creditors in the bankruptcy process.
Celsius filed for bankruptcy in December 2022 and has been undergoing bankruptcy proceedings. The settlement agreement is aimed at providing relief to creditors who have been affected by the bankruptcy filing.

What the Settlement Agreement Means for Creditors

The settlement agreement reached between Celsius, UCC, and the Account Retention Team is aimed at providing relief to creditors who have been affected by the bankruptcy filing. The 15% physical distribution of cryptocurrency ensures that creditors will receive some payment for their claims. The rest of the amount will be treated as Earn’s claims in the plan.
However, it is important to note that the joint motion for the application is still pending approval, and there is no guarantee that the settlement agreement will be approved. Creditors should keep this in mind as they take any actions related to their claims.

Possible Implications

The settlement agreement reached between Celsius, UCC, and the Account Retention Team is a positive development for creditors who have been waiting for relief from the bankruptcy process. However, the joint motion for the application is still pending approval.
If the settlement agreement is approved, it could set a precedent for similar agreements in future bankruptcy cases involving cryptocurrency companies. The agreement also shows that there is an increasing awareness of the importance of cryptocurrencies in bankruptcy proceedings, and that cryptocurrencies are gradually being recognized as assets that should be protected in bankruptcy cases.

Conclusion

The settlement agreement reached between Celsius, UCC, and the Account Retention Team is a positive development for creditors who have been waiting for relief from the bankruptcy process. The agreement provides for a 15% physical distribution of cryptocurrency to creditors who chose to “withhold” accounts. The joint motion for the application will be heard on April 18, 2023.

FAQs

1. What is Celsius?
Celsius is a blockchain-based platform that offers financial services and products to its clients.
2. What is UCC?
UCC is a committee that represents the interests of unsecured creditors in the bankruptcy process.
3. Will the settlement agreement be approved?
The joint motion for the application is still pending approval, and there is no guarantee that the settlement agreement will be approved.
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