Celsius Network reached settlements that potentially clear a path for the crypto lender to win court approval for its plan to return assets to its customers and conclude its bankruptcy, the Wall Street Journal reported. One of the settlements resolves customer claims over allegations of fraud and misrepresentation by prior Celsius management by bumping up recoveries by 5%. The agreement resolves 30,000 claims seeking $78 billion in compensation, according to court papers filed on Thursday by lawyers for Celsius. The settlements set the stage for a confirmation hearing on Celsius’s reorganization plan in October before U.S. Bankruptcy Judge Martin Glenn and for customers to start receiving disbursements of crypto and other assets by the end of the year, according to the court papers. Lawyers for Celsius had argued customers were owed no more money than what they deposited on its platform, but many users filed claims seeking damages over alleged misconduct by the company’s former management, according to the court papers.
