A Paxful resolution was struck about a week ago between Celsius and Celsius Custody account holders. As a consequence, the latter group was offered a return of up to 72.5% – half immediately and the other half by the end of the year – in exchange for signing away their right to future lawsuits.
The great majority of users, however, did not have Custodial accounts. Earn account holders were not granted a return since the judge agreed that Celsius’s Terms of Service demonstrated that the users had handed away their coins. These clients were offered solely shares in a new firm formed by the deal’s sponsor.
Paxful To Return Lost Celsius Funds
Fortunately, there is a silver lining for certain Earn users. Paxful CEO Ray Youssef declared last evening that he will be refunding consumers who were also Celsius Earn users. Although the number of Celsius Earn users dissatisfied with the return agreement and Paxful users is modest, the gesture will make whole some of the individuals who had previously given up hope of ever seeing their monies again.
It is unknown how many people are implicated, but Youssef verified that the total reimbursed amount will be roughly 8.8 BTC, which will come from their coffers. Youssef also apologized to the community for his previous connection with Celsius through Paxful Earn, claiming that he and his organization should have known better than to put their faith in the high APY returns promised.
Initially, Paxful employees assumed that the bankruptcy agreement negotiated by Celsius and its creditors would include creditors related to the case through third-party contracts, such as those with Paxful Earn. Sadly, they rapidly realized that attempting to reimburse mutual clients from the settlement in question was a losing cause.