Community Update — Third Day Hearing
As we move forward through our restructuring, we participated in our third day hearing earlier today. We appreciated the opportunity to hear from many of the key stakeholders in our Chapter 11 process and engage in dialogue on several timely and important matters.
We continue to focus on maximizing value for all stakeholders, and we today took what we hope to be a positive first step towards meeting the expectations of our community. Among the many important matters discussed was a motion that we filed with the Court requesting that customers with certain Custody and Withhold accounts should be granted the ability to withdraw the amount of digital assets owed to them in those accounts.
At this time, the motion is focused on assets currently owed in Custody and Withhold accounts that were never in the Earn or Borrow Program, as well as Custody and Withhold accounts where transfers from the Earn and Borrow Programs were, in the aggregate, less than USD $7,575 (a specific legal threshold), for users that do not have outstanding loans.
We are approaching recovery in stages and this step is just the first among many. Our collaboration and productive dialogue with the Unsecured Creditors Committee (UCC) and the various ad hoc committees representing Custody and Withhold account holders, and others, will continue in a dynamic manner. This motion is currently scheduled to be heard by the Court on October 6, 2022.
The aforementioned motion would impact tens of thousands of Celsius customers and we look forward to working closely with the other parties involved in the restructuring process to move this conversation forward. At the same time, we want all our customers to know that we read every letter shared with the Court, and while today’s motion would apply only to a certain group of customers, we are preparing to address matters related to all customers as we move ahead. Additionally, we reaffirmed our commitment to ensuring that similarly situated customers are treated similarly.
As part of the proceedings today, we also discussed the importance of asset and data security, which continue to be of paramount significance to all at Celsius. Similarly, as we prepare to communicate with you on the claims process and procedures in the coming weeks, we asked the Court to consider redacting certain personally identifiable information in key materials involved in Court proceedings. Ahead of our next hearing, currently scheduled for September 14, 2022, we will be working with the other parties in the case in an effort to reach consensus around the handling of personally identifiable information, among other issues.
Celsius is focused on continued transparency and information-sharing throughout our case. In that spirit, we will continue to share updates with you as and when appropriate.