Celsius creditors will vote on the proposed settlement plan that includes debt-to-equity swaps

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.