Celsius’ Settlement Agreement with Creditors: All You Need to Know

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 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.

What is Celsius and UCC?

Celsius is a cryptocurrency lending platform that offers interest rates and loans in various cryptocurrencies like Bitcoin and Ethereum. On the other hand, the Official Committee of Unsecured Creditors of Celsius (UCC) represents a group of creditors holding unsecured claims against Celsius.

What is the Settlement Agreement and How does it Affect the Creditors?

The settlement agreement between Celsius and UCC aims to address the issue of unsecured creditors withholding accounts on the Celsius platform. The agreement provides these creditors with a 15% physical distribution of cryptocurrency so that they no longer need to withhold accounts. The remaining accounts will be treated as Earn’s claims in the plan. The overall impact of the settlement agreement on the creditors is subject to the hearing on April 18, 2023.

Why Did Some Creditors Withhold Their Accounts?

The reason why some creditors chose to withhold their accounts on the Celsius platform is not clear. However, it is likely that these creditors disagreed with Celsius regarding the treatment of their unsecured claims.

What Does This Settlement Agreement Mean for Celsius?

The settlement agreement between Celsius and UCC is expected to be financially beneficial for Celsius. As of 2022, Celsius reportedly had over $25 billion worth of cryptocurrency assets under management. Therefore, the settlement agreement could result in Celsius retaining more of its assets.

Conclusion

The settlement agreement between Celsius and UCC is a crucial development for the cryptocurrency industry. With the growing interest in cryptocurrencies and their adoption, these types of settlements are critical to building trust between the industry and its stakeholders. The April 18 hearing to approve the joint motion for the relevant application will provide a clearer picture of the impact of the settlement agreement on the creditors and Celsius.

FAQs

Q: What is Celsius?
A: Celsius is a cryptocurrency lending platform that offers interest rates and loans in various cryptocurrencies like Bitcoin and Ethereum.
Q: Why did UCC withhold its accounts on the Celsius platform?
A: The reason why UCC chose to withhold its accounts on the Celsius platform is not clear. However, it is likely that these creditors disagreed with Celsius regarding the treatment of their unsecured claims.
Q: What does the settlement agreement mean for Celsius?
A: The settlement agreement between Celsius and UCC is expected to be financially beneficial for Celsius. As of 2022, Celsius reportedly had over $25 billion worth of cryptocurrency assets under management.