Celsius Network, the bankrupt digital asset platform, is in the news once again. A court judge has just approved a settlement that gives the clients of Celsius custody to receive 72.5% of their digital holdings back. The approval was granted on Tuesday during the court hearing.
The move comes after an agreement was reached by Celsius debtors, the unsecured creditors, and a group of custodial account holders. It is worth mentioning that the settlement can’t be forced upon anyone, and the custody account holders have the right to opt out.
Despite its failure to pay its creditors, it has recently come to light that Clesius crypto is paying millions of dollars to its lawyers and advisors. This has led to a backlash from the affected users of the platform, most of whom have lost access to their life savings due to bankruptcy proceedings.
According to a recent Twitter post from Cam Crews, around $102 million has been filed so far in legal fees. His projections also showed that another $42 million still remains to be paid by the bankrupt platform. The Celsius Network community expressed their anger in response to the tweet and asked for a ‘proof of work’ for such heft fees.
According to the lawyer representing the custodial holders’ group, the latest agreement with Celius was very hard to reach. Bryan Kotliar said, ‘there have been many ups and downs.’ He further said during the court proceedings that everyone was a little unhappy with the settlement. However, the judge replied, ‘That’s usually the best settlement.’
Celsius crypto filed for chapter 11 bankruptcy in July 2022 after it failed to meet fulfill the withdrawals of its users. It is worth mentioning that the recent agreement is only for Celius network custody account holders, and the fate of the Celsius earn is still unclear.
This post was last modified on %s = human-readable time difference 18:24