Celsius and UCC agree to provide creditors with 15% cryptocurrency distribution

03/29/2023 06:26 • Metaverse Matters • 82 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

On March 29, 2023, the Official Committee of Unsecured Creditors of Celsius (UCC) announced on Twitter 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.

Understanding the Celsius-UCC Settlement Agreement

The recent announcement made by Celsius and the Official Committee of Unsecured Creditors of Celsius (UCC) has generated significant buzz within the cryptocurrency community. If you’re wondering what this means and what implications this agreement holds for Celsius investors, read on.
The settlement agreement states that Celsius and UCC will provide creditors who have chosen to “withhold” accounts with a 15% physical distribution of cryptocurrency. This means that, if you’re a creditor who has “withheld” funds, you will receive a portion of the cryptocurrency held by Celsius. The value of the cryptocurrency that you receive will be 15% of the amount that you originally withheld.
The rest of the withheld amount will be treated as Earn’s claims in the plan. Earn was a company that filed for bankruptcy in 2022 and was acquired by Celsius, hence its creditors are now seeking compensation through Celsius.

What This Means For Celsius Investors

This settlement agreement is a significant step towards resolving the issues that have plagued Celsius and its investors. If you’re a Celsius investor, this agreement should bring some relief as it offers a way to recover some of the cryptocurrency that you had deposited with Celsius.
However, it’s important to note that this agreement only applies to creditors who have chosen to “withhold” funds. If you’re an investor who did not withhold funds, you will not be eligible to receive the 15% distribution of cryptocurrency.
It’s also important to keep in mind that the hearing to approve the joint motion for the relevant application will be held on April 18, 2023. Until then, the terms of the settlement agreement may be subject to change.

FAQs

Q1. What is Celsius?

Celsius is a blockchain-based cryptocurrency lending and borrowing platform that enables users to earn interest on their cryptocurrency holdings. Users can deposit their cryptocurrency on the Celsius platform and earn interest on it.

Q2. What is the Official Committee of Unsecured Creditors (UCC)?

The UCC is a group of creditors who have filed an unsecured claim in the bankruptcy case of a debtor. The UCC represents the interests of these unsecured creditors in the bankruptcy proceedings.

Q3. What is Earn?

Earn was a cryptocurrency lending platform that filed for bankruptcy in 2022. The company was subsequently acquired by Celsius. The creditors of Earn are seeking compensation through Celsius.

Conclusion

The recent settlement agreement between Celsius and the Official Committee of Unsecured Creditors of Celsius (UCC) is a significant development in the ongoing bankruptcy proceedings. The agreement offers a way for creditors who have withheld funds to recover 15% of the cryptocurrency that they had deposited with Celsius. However, it’s important to keep in mind that the terms of the settlement agreement may be subject to change until the hearing to approve the joint motion for the relevant application is held on April 18, 2023.

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