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- Retail users who took below $100k and agreed to the plan will not face a clawback.
- In contrast, retail users who took $100k to $250k can settle 27.5% of their funds.
- The litigation trust will pursue those who withdrew over $250k case-by-case.
The Celsius Network recently released an update on its Chapter 11 bankruptcy plan. It provides a glimpse into the negotiations with retail borrowers and creditors, including treating in-kind crypto returns, CEL token custody, and creditor classes.
Here it is. Joint #Celsius #NovaWulf Chapter 11 Plan of Reorganization! https://t.co/4DkfTlIQmP— Simon Dixon (@SimonDixonTwitt) April 1, 2023
According to the new updates, retail users who withdrew less than $100k and agreed to the plan will not face a clawback. In contrast, retail users who took between $100k and $250k can settle 27.5% of their funds in USD, Ethereum, or Bitcoin.
However, the litigation trust will pursue those who withdrew more than $250k on a case-by-case basis.
According to official documents, Celsius Network negotiated new terms with retail borrowers. Simon Dixon, the founder of BankToTheFuture, described it as an option to remain a Bitcoin maxi over an Ethereum maximalist. However, details of the negotiations will be released in April.
Another critical point of the update is the treatment of in-kind crypto returns. Celsius Network treats the return of in-kind crypto as a non-taxable event, assuming the Internal Revenue Service does not make a specific declaration otherwise under the tax code.
In a new 2023 budget plan, the Canadian government said that federally regulated pension funds in the country would have to tell the Office of the Superintendent of Financial Institutions (OSFI) about their exposure to crypto assets.
According to the report, the government seeks to protect Canadians’ retirement benefits following several high-profile bankruptcies in the financial world affecting pension funds, including the recent failures of the FTX crypto exchange and the Celsius Network.
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