ChainCatcher news, Celsius stated on social media that it has notified the court regarding a data security incident reported by Celsius claims agent Stretto. According to court documents, on April 17, 2024, Stretto discovered that certain Celsius creditor data held by Stretto was accessed by unauthorized users following a phishing attack. Stretto terminated all unauthorized access to the affected accounts on the same day. Stretto has hired an independent computer forensics company to conduct an investigation to determine the severity of the data security incident. The investigation is ongoing, but as of now, Stretto has identified that the accessed information includes creditor names, email addresses, mailing addresses, and claim amounts.The statement released by Celsius debtors regarding this data security incident states: "Given the role Stretto plays in the distribution process under this plan, out of an abundance of caution, the debtors have temporarily suspended distributions to creditors under this plan. We hope to confirm the main findings of the investigation next week so that we can immediately resume distributions under the plan in a safe and secure manner."

ChainCatcher news, according to Cointelgraph, Celsius creditors have stated that they were forced to accept dollars instead of cryptocurrencies, resulting in payments that are significantly lower than initially promised, with the payment amounts reportedly reduced by 30% or more compared to the amounts promised in the original bankruptcy plan.

ChainCatcher news, PayPal announced that U.S. Celsius creditors can receive their allocated BTC and ETH through PayPal and Venmo. Creditors can log in to PayPal and Venmo and enter the unique claim code provided by Celsius to receive their allocations. The Celsius token distribution starts today and will continue over the next few weeks.

ChainCatcher news, according to The Block, Celsius's creditors have voted in favor of a restructuring plan that will return approximately $2 billion worth of Bitcoin and Ethereum to creditors and allocate equity in the new company. Documents show that over 98% of creditors voted in support of the plan. Next, the U.S. Bankruptcy Court for the Southern District of New York will hear the case and make a final approval at a hearing on October 2.

ChainCatcher news, the judge approved a statement disclosed by Celsius on Thursday, and creditors are expected to recover 67%-85% of their assets, and will also vote on its plan to sell assets to the Fahrenheit consortium.In addition, interim CEO Chris Ferraro stated in an email statement that under Chapter 11 proceedings, "we remain focused on creating the best outcomes for our customers and creditors and returning asset value as quickly as possible," a process that began in July 2022 and is overseen by New York Bankruptcy Judge Martin Glenn.Creditors will vote on the plan between August 24 and September 22, which involves selling assets to the Fahrenheit consortium. Court documents show that creditor returns may range from 67% for Earn account holders to 85.6% for Celsius lending program participants, primarily realized in the form of BTC and ETH, while the return rate from asset liquidation is only 47%.

According to ChainCatcher, as reported by Cointelegraph, the bankrupt crypto lending platform Celsius can begin sending ballots to its customers to vote on a proposed settlement plan. The plan includes the Fahrenheit consortium purchasing Celsius's assets and launching a new company that will distribute Celsius's assets and equity in the new company to its customers.Judge Martin Glenn of the Southern District of New York Bankruptcy Court approved the motion, allowing Celsius's customers to vote on settlement-type claims to compensate participants in Celsius's "Earn" program, while also increasing the compensation amount for customers by 5% to address claims regarding fraud and false statements by Celsius's management.According to a previous report by ChainCatcher, Celsius plans to shut down its application within 90 days and allocate $2.03 billion in crypto assets, having selected PayPal as the third-party distribution agent.

ChainCatcher news, according to Bloomberg, representatives of Celsius creditors requested a judge on Wednesday to allow them to subpoena FTX for information on 10 private wallets, which they claim were involved in suspicious transactions of Celsius's so-called CEL Token between April and August.The blockchain consultant hired by the creditors, Elementus, identified 947 transactions involving deposits and withdrawals of CEL Token that correspond almost one-to-one between 10 private crypto wallets and wallets on the FTX exchange. The problematic CEL transactions occurred between the date Celsius suspended customer withdrawals on June 12 and the date the company filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code on July 13. (Source link)

ChainCatcher news, the Celsius creditors' committee stated on Twitter that in a recent customer claims ruling, Judge Glenn ruled that customers can only make cryptocurrency contract claims against Celsius Network LLC, but Judge Glenn's decision does not prevent customers from making non-contract claims against all debtors, such as fraud, negligent misrepresentation, or other statutory or common law claims.In light of this court ruling, the debtors have now reopened the deadline. Customers can file proof of claim against any debtor by April 28 based on this ruling. (source link)

ChainCatcher news, the official committee of Celsius creditors has proposed to sue Celsius co-founder Alex Mashinsky and other executives, accusing them of "fraud, recklessness, gross mismanagement, and self-serving behavior," which ultimately led to the collapse of this cryptocurrency lending institution. Lawyers stated that the negligence and reckless investments by these executives resulted in Celsius losing $1 billion within a year, while mismanagement led to an additional loss of $2.5 billion.Furthermore, the Celsius creditors' committee also accused the executives of spending "hundreds of millions of dollars" in the open market to inflate the price of CEL tokens, while "secretly selling tens of millions of CEL tokens (or being aware of such sales)" for personal gain. (source link)

ChainCatcher news, Celsius creditors have begun to subpoena Equities First, a lending company embroiled in Celsius's bankruptcy. Previously, Celsius's former CEO Alex Mashinsky stated that the company had borrowed from Equities First, and when they attempted to repay the loan, Equities First was unable to return the collateral. Mashinsky indicated that Celsius still owes Equities First $439 million.Current creditors are seeking information regarding the loan agreement between Celsius and Equities First, any cash transfers between Celsius and the lender, and the reasons why Equities First was unable to repay the $439 million in collateral. (CoinDesk)