Celsius Settlement Agreement: Creditors to Receive 15% Physical Distribution of Cryptocurrency

03/29/2023 06:26 • Tech Ticker • 133 views

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

It was recently announced that Celsius, UCC, and the Account Retention Team have reached a settlement agreement, which will provide creditors who chose to “withhold” accounts with a 15% physical distribution of cryptocurrency. The rest of the amount will 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. In this article, we will explore what the settlement agreement entails, and its potential impact on creditors.

Understanding the Celsius Settlement Agreement

Celsius, a UK-based crypto lending platform, was placed under receivership after its assets were frozen by the Financial Conduct Authority (FCA). As a result, the Official Committee of Unsecured Creditors (UCC) was appointed to oversee the liquidation of the platform’s assets. The recent settlement agreement is a result of negotiations between the UCC, Celsius, and the Account Retention Team.
The settlement agreement provides creditors who chose to “withhold” accounts with a 15% physical distribution of cryptocurrency. The rest of the amount will be treated as Earn’s claims in the plan. It is worth noting that Earn is a parent company of Celsius. The hearing to approve the joint motion for the relevant application will be held on April 18, 2023. If approved, the settlement agreement will be implemented, and creditors will receive their distribution of cryptocurrency.

Potential Impact for Creditors

The settlement agreement is likely to provide some relief to creditors who have been waiting for the liquidation of Celsius’s assets. The physical distribution of cryptocurrency will allow creditors to convert their virtual assets into real-world money, which may help them meet their financial obligations.
However, the settlement agreement may not be satisfactory for all creditors. Some creditors may have wanted a larger percentage of the distribution, while others may have preferred to receive their payment in a different form. The settlement agreement only provides a physical distribution of cryptocurrency, which may not be suitable for all creditors.

Conclusion

To summarize, the recent settlement agreement between Celsius, UCC, and the Account Retention Team provides creditors who chose to “withhold” accounts with a 15% physical distribution of cryptocurrency. While this may provide some relief to creditors, it may not be satisfactory for all parties involved. If the joint motion is approved on April 18, 2023, the settlement agreement will be implemented, and creditors will receive their distribution of cryptocurrency.

FAQs

Q1. What is Celsius?
Celsius is a UK-based crypto lending platform that was placed under receivership after its assets were frozen by the Financial Conduct Authority (FCA).
Q2. What is the Official Committee of Unsecured Creditors (UCC)?
The UCC is a committee appointed to oversee the liquidation of Celsius’s assets.
Q3. When will the joint motion for the relevant application be held?
The hearing to approve the joint motion for the relevant application will be held on April 18, 2023.

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