TechFlow reports, citing The Wall Street Journal and court documents, that the bankrupt crypto lending firm Celsius Network has reached a key settlement. This agreement is expected to gain court approval for returning assets to customers and concluding its bankruptcy proceedings.
Approximately 30,000 customer claims have been settled, with claimed amounts totaling as high as $78 billion. The court will review and potentially approve the settlement agreement at a hearing scheduled for August 10.
The report also notes that a confirmation hearing for Celsius’s restructuring plan is set for October, and customers could begin receiving cryptocurrencies and other assets by the end of this year.
Celsius’s legal team argues that the company does not owe customers more than their original deposits. However, some users are seeking compensation for alleged misconduct by former management.
Previously, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit in federal court against Celsius and its former CEO, Alex Mashinsky, accusing them of raising billions of dollars through fraud and unregistered offerings, defrauding investors, and manipulating the price of its native token. Celsius filed for bankruptcy about a year ago, at a time when the firm held approximately $30 billion in assets.
