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Post: Celsius Controversy: Forced U.S. Dollar Payments and Reduced Payouts-Summary & Analysis

Celsius Controversy: Forced U.S. Dollar Payments and Reduced Payouts-Summary & Analysis

Key Points:

  • Celsius account holders are being forced to accept U.S. dollars instead of crypto payments.
  • Creditors of bankrupt Celsius are experiencing over a 30% reduction in payments due to a distribution rule favoring select corporate accounts.
  • Some creditors are receiving much smaller payments in cash instead of the originally promised crypto due to the distribution rule.

Forced Acceptance of U.S. Dollars:

Some Celsius account holders are reportedly being compelled to accept U.S. dollars instead of the crypto payments they were promised.

30% Reduction in Payments:

A group of bankrupt Celsius creditors are facing a significant reduction in payments, allegedly over 30%, due to a rule favoring select corporate accounts in the distribution process.

Impact of Cash Payments vs. Crypto:

Due to the distribution rule, some creditors are receiving cash payments instead of the original crypto payments, resulting in substantially lower amounts particularly as the value of Bitcoin and Ether has significantly appreciated since the distribution agreements were made.

Hot Take:

The situation involving Celsius highlights the challenges creditors face in bankruptcies within the crypto industry, especially when dealing with volatile asset values. Such experiences emphasize the importance of transparency, fairness, and possibly regulatory oversight in handling disputes of this nature to protect the interests of all parties involved.

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