{"id":82045,"date":"2023-07-22T15:28:22","date_gmt":"2023-07-22T12:28:22","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=82045"},"modified":"2025-09-12T02:43:07","modified_gmt":"2025-09-11T23:43:07","slug":"wsj-celsius-reaches-key-settlements-to-return-funds-to-clients","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/wsj-celsius-reaches-key-settlements-to-return-funds-to-clients\/","title":{"rendered":"WSJ: Celsius reaches key settlements to return funds to clients"},"content":{"rendered":"<p><a href=\"https:\/\/forklog.com\/en\/news\/celsius-files-for-bankruptcy-protection\">Bankrupt<\/a> crypto lending platform Celsius Network has signed a series of global settlements that pave the way for court approval for the return of funds to clients. <a href=\"https:\/\/www.wsj.com\/articles\/celsius-network-reaches-key-settlements-to-resolve-litigation-2be99035\">The Wall Street Journal<\/a> reports.<\/p>\n<p>According to the report, one of the settlements allows resolving users&#8217; claims of fraud by the former management by increasing the restitution by 5%. Altogether, the settlements resolved 30,000 claims for compensation totaling $78 billion.<\/p>\n<p>Court documents indicate that the package of agreements laid the groundwork for approval of Celsius&#8217;s restructuring plan in October. Creditors and investors are set to begin receiving funds by the end of the year if the ruling is favorable.<\/p>\n<p>The company&#8217;s lawyers noted that clients cannot claim amounts exceeding the deposits they made. However, some users have filed additional lawsuits for damages arising from the former management&#8217;s improper actions.<\/p>\n<p>Another agreement resolves a dispute between Celsius&#8217;s two largest client groups: holders of interest accounts and borrowers of fiat-currency loans secured by digital assets. Borrowers sought a more favorable reimbursement regime and gained the ability to reclaim cryptocurrency from collateral after loans are repaid.<\/p>\n<p>The bankruptcy court is expected to review the settlements for approval in early August.<\/p>\n<p>Celsius&#8217;s restructuring plan envisions returning a portion of clients&#8217; cryptocurrency and compensating the remainder with shares in the new company. The latter will be registered by the <a href=\"https:\/\/forklog.com\/en\/news\/fahrenheit-consortium-wins-celsius-asset-auction\">Fahrenheit consortium<\/a>, led by Arrington Capital and Proof Group. The firm will manage Celsius&#8217;s mining business and other illiquid assets.<\/p>\n<p>Earlier, the U.S. Department of Justice <a href=\"https:\/\/forklog.com\/en\/news\/u-s-authorities-file-seven-charges-against-celsius-and-its-former-ceo\">brought seven criminal charges<\/a> against the Celsius crypto-lending platform and its former chief, Alex Mashinsky.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bankrupt crypto lending platform Celsius Network has signed a series of global settlements that pave the way for court approval for the return of funds to clients. The Wall Street Journal reports.<\/p>\n","protected":false},"author":1,"featured_media":82046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1348],"class_list":["post-82045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-celsius-network"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=82045"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82045\/revisions"}],"predecessor-version":[{"id":82047,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82045\/revisions\/82047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/82046"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=82045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=82045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=82045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}