Celsius

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Celsius Network, the crypto lender that filed for Chapter 11 bankruptcy in June last year, is on the brink of concluding its bankruptcy process. A recent filing in the Bankruptcy Court for the Southern District of New York reveals that Celsius has reached two agreements allowing the return of funds to all customers, potentially ending the bankruptcy proceedings. 
The agreements, subject to approval by Judge Martin Glenn on 10th August, aim to resolve customer claims related to fraud and misrepresentation. The first agreement would increase customer clawbacks by 5%, ensuring former customers receive 105% of their claimed funds, effectively clearing Celsius’ debt to them. The second agreement proposes an alternative resolution for customers who borrowed cryptocurrency, offering a portion of their funds in crypto and another in shares of the new company arising from the bankruptcy proceedings. 
While these agreements have been made to represent creditors, not all former customers may accept them. Nevertheless, if the agreements are approved, Celsius Network could reopen under a new company that takes over its assets and services. 
However, the challenges for crypto lending companies like Celsius run deep. They promise high returns on crypto deposits, but such promises come with risks. These companies engage in high-risk activities to achieve these returns, which could lead to losses and an inability to return funds to customers. 
Despite the risks, there is still market demand for crypto lending services. Many cryptocurrency owners seek higher returns on their holdings, particularly those with stablecoins, which offer minimal returns. 
While Celsius Network may find a resolution to its bankruptcy, the crypto lending industry may continue to face uncertainty during bear markets. The temptation of high returns for customers and the market demand for such services might result in more disasters akin to Celsius’ situation. As the market evolves, investors must remain vigilant and consider the risks of engaging in high-yield crypto lending. 
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Bankruptcy Over For Crypto Lender Celsius Network?

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