- Celsius unveils repayment plan for customers with claims following recent bankruptcy plans.
- Customers with existing loans will have their debt removed from their collateral.
- Customers who do not vote on the plans may miss out on some aspect of the repayment plans.
Defunct cryptocurrency lending platform Celsius has unveiled a repayment plan for its customers with existing claims, crypto analyst Aaron Benette reveals in a recent update. This move follows a recent court approval of its disclosure statement and voting plans.
Details of the repayment plans reveal the company intends to pay back customers using PayPal (NASDAQ:PYPL) as a third-party agent. Certain categories of customers will also be repaid back by Celsius within a set period of time. However, payments back will be made in either BTC or ETH.
In addition, customers with loan claims are not required to offset their loans to be eligible for repayment. As provided in the repayment document, Celsius claims customer loans are “being forgiven.” While that might seem so, the reality is that existing loans are removed from collateral, and the balance is paid back to customers.
At the present time, customers who fall in the convenience class claims will get 70% of their assets back. Likewise, customers in other claims categories will also get varying returns, which will comprise cryptocurrencies and stocks of a new company set to launch.
A voting deadline has been set for September 22, before which all eligible customers are expected to vote on the company’s bankruptcy plans. However, the company says that eligible voters who do not participate in the voting will be deemed to have accepted the plans. Furthermore, users who fall into this category may miss out on some aspects of the repayment plan.
It is also important to note that customers will be able to ascertain how much they will get in repayment 15 days before. The company says it is to help it determine exact figures due to the changing prices of its BTC and ETH holdings.
These recent plans by Celsius climaxes its journey since its troubles began over a year ago. Since that time, the company and its executives have faced multiple allegations of market manipulation and fraud.
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