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UCC, Celsius, and the Dispute on Customer’s Right to Claim

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On March 10, the official unsecured creditor committee (UCC) of Celsius tweeted: \”U.S. federal judge Martin Glenn disagreed with the views of UCC and Celsius. H

UCC, Celsius, and the Dispute on Customers Right to Claim

On March 10, the official unsecured creditor committee (UCC) of Celsius tweeted: “U.S. federal judge Martin Glenn disagreed with the views of UCC and Celsius. He agreed with the views of the holders of preferred shares and believed that the customer did not have the right to claim for every debtor entity. UCC disagreed with the judgment and was disappointed with the result of the judgment. UCC is considering its choice to ensure that the customer obtains the maximum value from Celsius.”

Celsius creditor: the court ruled that the customer did not have the right to claim for every debtor entity

Analysis based on this information:


The message announced the disagreement between the official unsecured creditor committee (UCC) of Celsius and the holders of preferred shares over the customer’s right to claim for every debtor entity. The dispute was brought to a U.S. federal judge, Martin Glenn, who recently issued his verdict.

According to the tweet, Judge Glenn sided with the preferred shareholders’ views and found that the customer did not have the right to claim for every debtor entity. This decision must have disappointed the UCC, who had been advocating for customer protection and the maximization of value from Celsius.

The UCC is a committee representing unsecured creditors in a bankruptcy case, and in this case, they were seeking to safeguard the interests of Celsius’s customers. The UCC might have argued that the customers had a legitimate right to claim against all of Celsius’s assets, including its subsidiaries, affiliates, or parent companies. This practice is known as substantive consolidation, which combines the assets and liabilities of related entities into a single pool of funds to be shared among creditors.

However, it seems that Judge Glenn did not agree with the UCC’s argument and instead favored the position of the preferred shareholders, who claimed that the customer’s right to claim was limited to the specific debtor entity they had a contract with. This view would mean that the customers’ claims would only be against Celsius and not other related entities.

The outcome of the judgment could have significant implications for Celsius’s bankruptcy case and the distribution of its assets to the creditors. The UCC is now considering its options to ensure that the customers receive the maximum value from Celsius. They might appeal the decision, seek alternative measures, or negotiate with other stakeholders to reach a settlement.

In summary, the message highlights the conflicting interests of different creditor groups and the central role of the U.S. federal judge in making a final decision. The dispute also underscores the complexity and legal intricacies of bankruptcy cases, which require careful analysis and interpretation of various laws and regulations.

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