Some Celsius account holders claim they are being forced to accept U.S. dollars instead of crypto, resulting in much smaller payments than they were initially promised.
A group of creditors of bankrupt crypto lending firm Celsius, which is facing over $3 billion in claims, is complaining of an allegedly 30% or greater reduction of payments versus what they were promised under the original bankruptcy plan. The reduction is allegedly caused by a rule where only 100 Celsius corporate accounts can receive distributions through the Coinbase exchange.
This rule allegedly forces some creditors to accept cash instead of crypto as payment. Since Bitcoin (BTC) and Ether (ETH) have risen in price significantly since the distribution was agreed upon, this leaves small business creditors with significantly reduced payments versus the top 100 business accounts on Celsius.
Cointelegraph was contacted by a Celsius creditor in Australia who claims to be owed 0.182 BTC and 3.05 ETH under the terms of the bankruptcy. The creditor, who wished to remain anonymous, claimed he was told by the Celsius debtors’ law firm, Kirkland & Ellis, that they would not receive the original amount. Instead, they will receive $15,741 in cash, 36% less than the cryptocurrencies’ market value of $24,552 at the time of publication. By contrast, a top-100 Celsius corporate creditor will get the full amount of crypto promised, the creditor claims.
