Just over a year ago, Celsius Network was officially declared bankrupt, overwhelmed by the turbulence of Terra Luna. Leaving a nearly $1 billion hole, the platform has since been restructured under US Chapter 11 bankruptcy proceedings. And it is precisely in this context that the lender has proposed two financial packages which, according to the Wall Street Journal, it could pave the way for obtaining court approval for the return of clients' assets..
The horizon brightens for Celsius users
Secondo court documents, an initial agreement covers an unsecured credit of $78,2 billion. This roughly corresponds to 30.000 compensation claims from defrauded customers who accuse Celsius management of fraud and misrepresentation. To compensate them, Celsius proposes to increase user recoveries by 5%.
The second agreement concerns customers with funds in the Celsius Earn program.. Under the proposal, they will be able to receive part of their funds in cryptocurrencies and compensation in shares of the new company that will emerge from the bankruptcy proceedings.
These two alternatives are now awaiting the green light from the courts. The hearing is scheduled for August 10.
Celsius is clearly trying to restore its reputation and get back into the game. Coincidence or not, these solutions come at a very early stage in the company's history. after arrestby the former head of the platform, Alex Mashinsky, on 13 July. Facing a series of allegations from at least three US regulators (SEC, CFTC and New York State Attorney General), the co-founder of the company that held over $30 billion in assets at its height has pleaded not guilty to charges of fraud and manipulation brought against him.
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