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 customers' assets.
The horizon brightens for Celsius users
Secondo court documents, a first agreement concerns an unsecured loan of 78,2 billion dollars. It corresponds to roughly 30.000 claims from defrauded customers who accuse Celsius's management of fraud and misrepresentation. To compensate them, Celsius proposes to increase user recoveries by 5%.
The second deal is for customers who hold funds in the Celsius Earn program.. Under the proposal, they will be able to receive a portion of their funds in cryptocurrencies and compensation in shares of the new company that will emerge from bankruptcy proceedings.
These two alternatives are now awaiting the green light from the courts. The hearing is scheduled for August 10.
Celsius is clearly looking to restore its reputation and get back in the game. Coincidence or not, these solutions come within days of the end of the year. 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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