Celsius Custody Update & Voyager Withdrawals | Summary and Q&A

TL;DR

This video provides updates on how to withdraw assets from Celsius if you had custody, the uncertain status of distributions for earn participants and loan borrowers, and the situation with Voyager's claims and holdbacks.

Key Insights

• 🔒 Celsius customers with custody assets can withdraw 36.25% of their funds now, with another withdrawal possible by the end of the year. There are withdrawal fees based on the type of asset.
• 🗓 The plan for liquid distributions and Equity or management share tokens for Celsius's earn customers is still uncertain. The auction is ongoing, and a bidder's disclosure statement needs to be approved before the exact amount can be determined.
• 💼 Voyager has 75% of customers' claims in its possession, but $445 million is being held back due to litigation with FTX Alameda. The held-back funds may be distributed to Voyager creditors in the future, pending the outcome of the legal proceedings.
• 💰 Voyager creditors will receive a distribution of $135 million for wind-down costs, including litigation expenses and going after other parties for more funds. There are also holdbacks of $74 million for potential tax claims and inter-company settlements. ⏰ Once Voyager becomes live, customers will have 30 days to log into their Voyager app and withdraw their crypto assets. Alternatively, they will receive a check or ACH withdrawal for the amount.
• 💱 Unsupported coins on Voyager will be liquidated, and users will receive USDC stablecoin in return. VGX holders will also receive USDC. The price of VGX has been declining, and many customers are frustrated with the situation.
• 📧 Customers will receive another email when the 30-day window opens to initiate crypto withdrawals. It is recommended to withdraw the assets once Voyager becomes live, but if customers take no action, they will receive the US dollar equivalent.
• 💰 For those who want to leave the process and sell their claim, Cherokee Acquisition is a company that helps customers sell their claims. Currently, customers can expect around 22-26% of the claim value for Celsius.

Transcript

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Questions & Answers

Q: How can Celsius users withdraw their custody assets?

Celsius users with custody assets can withdraw 36.25% today by completing their KYC and paying the respective withdrawal fees. The next withdrawal will likely be available by the end of the year.

Q: What is the current situation for Earn participants and loan borrowers?

The distribution plan for Earn participants and loan borrowers is still uncertain due to ongoing auctions and regulatory approvals. The exact amount they will receive in liquid distributions or other forms of compensation is yet to be determined.

Q: Why are there holdbacks and litigation involving Voyager?

Voyager is experiencing litigation between FTX Alameda and itself, leading to holdbacks of $445 million. The outcome of the litigation will determine if Voyager creditors can receive a distribution from this amount.

Q: What happens if Voyager app users do not withdraw their assets?

If Voyager app users do not withdraw their assets within the designated 30-day window, they will receive their funds either through a check or an ACH withdrawal.

Q: What will happen to unsupported coins on the Voyager app?

Unsupported coins on the Voyager app will be liquidated, and users will receive USDC (a stablecoin) instead.

Q: Can VGX holders withdraw their assets?

VGX holders cannot withdraw their assets directly. Instead, they will receive USDC in lieu of the VGX coins.

Q: Is it possible to sell your claim in the Voyager bankruptcy case?

Yes, it is possible to sell your claim in the Voyager bankruptcy case if you choose to do so. Companies like Cherokee Acquisition have been buying claims from individuals looking to sell. This may be an option for those who want to exit the process due to emotional stress or financial needs.

Summary & Key Takeaways

• Celsius: Those with custody assets can withdraw 36.25% today, but withdrawal fees apply; Earn participants and loan borrowers still await confirmation of liquid distributions and other forms of compensation.

• Voyager: Litigation between FTX Alameda and Voyager is causing holdbacks of $445 million; $135 million is allocated for wind-down costs and litigation reserve, $50 million for admin and priority tax claims, and $74 million for other holdbacks.

• Voyager app users will have 30 days to withdraw supported coins, while unsupported coins will be liquidated for USDC; VGX holders will receive USDC instead of the coin itself.