Coin Edition -
- Celsius creditors seek a second payout after initial 35% reduction in corporate account claims.
- Payment switch from crypto to cash caused significant losses for Celsius corporate creditors.
- Faller Creditors demand $350,596 additional compensation for delayed and reduced cash payments.
Two corporate creditors of bankrupt crypto lender Celsius are seeking additional compensation, claiming unfair treatment compared to individual account holders in the firm’s repayment plan.
Filed on June 3, with a hearing scheduled for June 27, the motion addresses grievances from a group of corporate creditors known as the “Faller Creditors.” These creditors, operating through four companies under individual retirement accounts (IRAs) owned by Sheri Anne Faller and Bernard Jacob Faller, claim they were treated unfairly compared to individual account holders.
The crux of the dispute centers on the method of repayment. Initially, corporate creditors like the Fallers expected to receive payments in cryptocurrency. However, Celsius opted to disburse payments in cash instead of the anticipated Bitcoin (BTC) and Ethereum (ETH). This change not only delayed the repayment process but also resulted in substantial financial losses for the creditors due to fluctuations in cryptocurrency prices.
Specifically, the Faller Creditors held over $1 million in cryptocurrency assets in their Celsius accounts before the firm’s bankruptcy filing. Under the negotiated bankruptcy plan terms, their claim was adjusted to $634,337.93, based on cryptocurrency values at the time. Despite this agreement, actual payments were delayed and ultimately made in cash on February 22 and April 22, totaling approximately $634,335 – less than the value of the cryptocurrencies they originally held.
The Fallers now assert that due to the delay and change in payment method, the actual cash value received was significantly less than what they were owed based on prevailing cryptocurrency prices. They are seeking an additional $350,596 to rectify this discrepancy, including interest for the delay.
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