2024-01-10 18:04:46
One of the most important developments in the bankruptcy proceedings of Celsius Network LLC is that the company has extended settlement options to account holders with large amounts of money.
As stated in the US Chapter 11 bankruptcy filing, “Withdrawal Preference Exposure” (withdrawal preference account holders) were required to settle their financial obligations by January 31, 2024.
The story of the failure of Celsius
The “withdrawal preference exposure” refers to the potential liabilities of account holders who have made significant transfers within 90 days prior to the July 13, 2022 petition date. This requirement is a fundamental element of an amended Chapter 11 reorganization plan.
The announcement strictly specifies that account holders with more than USD 100,000 are eligible for the settlement plan. However, there are stipulations. They could not be “excluded parties”, could not vote against the plan and could not withdraw their consent. You will be notified of the settlement option by email, which includes a detailed description and a form to start the settlement process.
For account holders seeking settlement, the path is clear, but time-bound. They must submit the election form by January 25, 2024 and make the settlement payment by January 31, 2024.
The notice also clarifies that Celsius account holders with exposures of $100,000 or less do not need to take action. However, those who do not settle their exposure may face legal consequences from the litigation administrator after the effective date.
Settlement payments directly affect the distribution of money to creditors. This increases the divided whole amount.
There are a few weeks left for Celsius customers to act
Last month, the Bankruptcy Court of the Southern District of New York detailed the process of recovering crypto assets for Celsius customers.
According to the filing, customers must update their Celsius account with the necessary information to comply with anti-money laundering regulations. The transfer fees per transaction must be paid by the account holders.
Celsius Network referral fees related to each crypto
Taken together, these represent important steps in addressing the financial issues facing the company and its stakeholders.
The focus now shifts to the reaction of account holders and the impact on the company’s restructuring efforts.
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