Celsius customers to vote on settlement plan with Fahrenheit after judge gives okay
The settlement was reached in July and, if the customers agree, it will go before the court for approval in October.
Bankrupt crypto lender Celsius can start sending out ballots to its customers for a vote on a proposed settlement plan that would see a consortium called Fahrenheit buy Celsius’ assets and launch a new company. That company would distribute Celsius assets and equity in the new company to its customers.
Judge Martin Glenn of the Southern District of New York bankruptcy court approved a motion to allow Celsius customers to vote on a settlement of class claims to reimburse participants in Celsius’ Earn program, as well as to increase customers’ recoveries by 5% to resolve claims concerning fraud and misrepresentation by Celsius management.
According to Bloomberg, the asset distribution would be worth about $2 billion. It added that Glenn additionally instructed Celsius to provide a “plain language” explanation of the settlement and material on crypto volatility and challenges Celsius’ mining operations could face.
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