Celsius Network, which filed for bankruptcy in June, has agreed to pay 5% more to its customers as part of a settlement.

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Celsius Network has reached a settlement with its customers that could make it easier for the company to exit bankruptcy. The settlement includes an offer to pay 5% more to customers who agree to participate in a litigation settlement concerning charges of management misconduct.

Celsius Raises Customer Payouts

Celsius and its unsecured creditors’ committee have reached a resolution on the committee’s class action fraud claim through a joint motion. As part of the agreement, assets account holders will receive a bonus in the company’s Chapter 11 plan, leading to significant cost savings and expediting the return of cryptocurrency to customers.

In a motion submitted to the US Bankruptcy Court for the Southern District of New York, the cryptocurrency lender, Celsius, stated that the proposed agreement with the committee of unsecured creditors would prevent the expenses and delays of prolonged litigation.

Celsius is facing more than $70 billion in fraud and other legal claims, unrelated to its customer contracts.

Account holders can choose to participate in the settlement or not. Custody account holders are not included in the settlement because they already have an agreement with Celsius.

Lawsuit Cost Reduction Deal

As per committee attorney Aaron Colodny’s email on Friday, the agreement is expected to reduce legal expenses and decrease the amount of cryptocurrency that Celsius will have to reserve for disputed claims.

The bankrupt cryptocurrency exchange had previously reached a $4.7 billion settlement with the Federal Trade Commission. Recently, the former CEO of Celsius, Alex Mashinsky, was arrested on federal securities fraud charges.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptocurrencyNews #NFT #Web3 #Blockchain #celsius

Becoming an Ethereum validator now requires waiting in a queue for approximately 45 days due to high demand and limited availability. Since Ethereum's transition to a Proof-of-Stake consensus algorithm, validators have replaced miners in securing the network. The process of becoming a validator was expected to be simplified: deposit 32 ETH and run the necessary software. However, the queue for validators has grown significantly.

Currently, there are 92,536 validators waiting to enter the network, causing the delay. It seems that the demand for becoming a validator remains high, with very few validators exiting the queue. Only four validators are currently in the exit queue.

Part of the reason for the extended queue is Celsius Network, a cryptocurrency lender. Celsius has been consistently depositing a significant amount of ETH, around $600 million worth, into the staking contract. This ongoing influx of ETH from Celsius contributes to the queue, with approximately 316K ETH added to the validator enter queue at current prices, as reported by Arkham Intelligence.

#ETH #Ethereum #celsius #validator #dyor

#celsius #crypto2023 #crypto #Binance #news

Bankrupt crypto lender, Celsius, has taken legal action against StakeHound, the liquid staking platform. The lawsuit centers around StakeHound’s alleged failure to return $150 million worth of ETH, MATIC, DOT and other tokens:In the legal documents submitted to the U.S. Bankruptcy Court for the Southern District of New York, Celsius claims that it had entrusted StakeHound with 25,000 staked ETH, 35,000 native ETH, 40 million MATIC and 66,000 DOT in 2021.

$ETH $MATIC $DOT

Celsius, the bankrupt crypto lender, has been granted permission to initiate the liquidation of its altcoin holdings into Bitcoin (BTC) and Ether (ETH) before distributing assets to creditors. This decision comes in the wake of the SEC's recent crackdown on various altcoins, prompting Celsius to alter its original distribution plan.

The approval, authorized by Bankruptcy judge Martin Glenn, allows Celsius to sell or convert any non-BTC and non-ETH cryptocurrencies, tokens, or other crypto assets, except those associated with Withhold or Custody accounts, into BTC or ETH. The commencement of this process is set to take place on or after July 1, 2023.

The SEC's classification of several top altcoins as unregistered securities in prominent crypto industry lawsuits played a pivotal role in Celsius' decision to pivot its distribution strategy. In response, Celsius has been actively collaborating with the SEC to ensure full compliance with all relevant federal and state laws and regulations during the distribution process.

Last month, Farenheit, a consortium of crypto investors, successfully acquired Celsius' assets through an auction. The consortium comprises prominent names like US Bitcoin Corp, Proof Group Capital Management LLC, Ravi Kaza, former Algorand CEO Steven Kokinos, and Coinbase.

Celsius, once a thriving platform with 1.7 million users, faced failure last year, leaving 300,000 users with balances exceeding $100. With the recent approval from the bankruptcy court, Celsius is now gearing up to convert its altcoin portfolio to BTC and ETH, setting the stage for asset distributions aligned with the top two cryptocurrencies by market cap.

#crypto2023 #celsius

Celsius Network LLC and its affiliated debtors in bankruptcy court have filed a motion seeking approval of a settlement agreement with Core Scientific Operating Company related to litigation between the two companies.
In a declaration filed supporting the motion, Celsius’ interim Chief Executive Officer, Chief Restructuring Officer, and Chief Financial Officer, Christopher Ferraro, stated that Celsius and Core have been involved in litigation over contract disputes referred to as the “Core Matters.”
Under the proposed settlement agreement, Celsius would acquire a Bitcoin mining site called Cedarvale from Core for $45 million. The consideration would include $14 million in cash, and the remaining $31 million would serve as consideration for Celsius releasing claims against Core related to the Core Matters litigation.
Ferraro declared his belief that the settlement agreement is reasonable and in the best interests of Celsius’ bankruptcy estate and stakeholders. He stated it would avoid costly and risky litigation that could otherwise delay Celsius’ bankruptcy reorganization plan.
The declaration makes clear the settlement agreement does not release claims Celsius has against Core related to convertible notes.
Ferraro stated acquiring the Cedarvale site and settling the Core Matters litigation helps build consensus among Celsius’ stakeholders. The court must approve the settlement agreement for it to take effect.
#celsius

Celsius Network, a crypto lending platform, has filed a noteworthy lawsuit against popular liquidity staking platform StakeHound. Celsius Network accuses StakeHound of failing to return approximately $150 million worth of tokens. These tokens include popular cryptocurrencies like Ethereum (ETH), Polygon (MATIC), and Polkadot (DOT).

Case Details:

The recent court filing revealed that Celsius Network had delivered a significant amount of tokens to StakeHound in 2021. Celsius claims that it exchanged these tokens (worth over $150 million) with StakeHound's liquidity staking "stTokens."

Celsius demands StakeHound to return the tokens it holds or controls, either in their original form or along with the stTokens. Celsius also seeks compensation for damages resulting from StakeHound's alleged breaches of duty and intentional misconduct. These claims include actual damages, exemplary damages, legal expenses, and interest. $ETH $DOT $MATIC

Additionally, Celsius requests an injunction to prevent StakeHound from pursuing arbitration during the bankruptcy process. This request indicates that Celsius Network believes StakeHound has acted in violation of rules and legal norms while engaging in arbitration proceedings during the bankruptcy process.

StakeHound's Arbitration Application:

Meanwhile, it is alleged that StakeHound has filed an arbitration application against Celsius in Switzerland following its bankruptcy filing. In the Swiss application, StakeHound defends itself against the lawsuit brought by Celsius, claiming that it has no obligation to exchange the stTokens for other tokens. #StakeHound's

StakeHound argues that it lost the keys for 35,000 Celsius ETH and is not obligated to recover these tokens. StakeHound claims that the responsibility for the key incident lies with a security service called Fireblocks. StakeHound's refusal to provide Celsius with the staked ETH is considered a clear breach of duty.

Outcome and Key Decisions:

As the case progresses, the court will have to determine the validity of Celsius' claims and whether StakeHound should be held responsible for the alleged breaches of duty and intentional misconduct. The court's decision could set a precedent for similar disputes in the crypto industry and have significant implications for both parties involved. #ETH #polygon #polkadot

In Summary:

Celsius Network's lawsuit against StakeHound has garnered significant attention in the world of cryptocurrencies. Celsius aims to recover the tokens that StakeHound has failed to return and fulfill its compensation claims. StakeHound, on the other hand, rejects Celsius' demands and presents its defense through the arbitration application. This complex case will be resolved through the legal process and could serve as an example for similar incidents in the crypto industry. #celsius