Aaron Bennett Outlines Personal Celsius Step-By-Step Voting Guide

Crypto influencer Aaron Bennett has released a comprehensive step-by-step guide explaining how Celsius creditors should fill out their bankruptcy ballots. Bennett walks through the entire voting process and provides his recommendations for each decision.

Disclosure: Everything in this article is our (TheDroidGuy’s) interpretation of what Aaron Bennett MAY be suggesting. You must make your own interpretation by watching his video to make your own conclusion. We are not making any recommendations. Everything written in this article is for informational purposes only. Please do your own research and make your own conclusions. Do NOT make any financial decisions based on this article.

Voting Guide Recommendations Summary:

• Accept the plan
• Do not opt out of the class action claim settlement
• Contribute claims to the litigation trust
• Do not opt out of third party releases
• Accept convenience class option only if claim is between $5,001-$10,000
• Prioritize liquid crypto allocation for retail borrowers

The Voting Ballot Walkthrough Explained

Understanding the Claims Listed

The first section of the ballot, Item 1, lists out the account holder’s claims against Celsius in each cryptocurrency as well as any retail borrower deposit and loan amounts. It calculates the “retail borrower post set off claim” which is the remainder after subtracting the loan principal from the borrower deposit collateral amount. This remaining amount will be treated similarly to an earn account claim.

Bennett explains that the “preference exposure” amount listed for each user is just informational. Users with less than $100k in preference exposure will not have to repay anything if they vote for the plan. Only those above $100k may need to repay a portion.

Retail Borrower Claim Treatment

Item 2 covers the options for retail borrowers. Borrowers can choose to repay all or part of their loan principal in order to receive an equal amount of bitcoin or ether back. This may provide tax benefits for some users.

If borrowers do not repay their loan, then the principal will be subtracted from their borrower deposit claim amount to calculate the “post set off” amount. This remaining post set off amount will be treated the same as earn account claims.

One negotiated benefit for borrowers is that they will get priority for the “liquid crypto weighted distribution” election, meaning they are more likely to be able to choose an allocation of mostly or all crypto.

Convenience Class Election

Item 5 explains the convenience class. Claims less than $10 are automatically in this class and get 70% of their claim in crypto.

Claims between $10-$5,000 can also opt into the convenience class and get the 70% crypto payout. To do so they must reduce their claim amount to $5,000.

Bennett explains that users with claims just above $5,000, such as $5,100 up to around $10,000, may want to opt into the convenience class because 70% of $5,000 would give them a higher overall percentage payout than the normal claim process.

However, it’s very important to understand that earn, borrow and withhold amounts are aggregated. Users cannot cherry pick which account types to reduce to the $5,000 convenience claim amount. The total across accounts, excluding custody, gets reduced.

Liquid Crypto vs Stock Election

Item 6 covers the ability to toggle your allocation between more liquid crypto or more equity stock in the Celsius reorganization company Nuco.

Choosing the liquid crypto weighting will discount the crypto allocation by 30% but provide more coins. Choosing the equity stock weighting will provide a 30% premium on the stock allocation.

Bennett explains that getting more liquid crypto is dependent on others electing to take more stock. Borrowers get priority for their crypto election requests.

This election does force an accept vote for the plan. Users can stick with the standard allocation by not choosing either option.

Custody Claims

Item 7 covers custody claims. Users who already accepted the prior custody settlement will get 72.5% of their custody assets. Users who did not accept yet can choose to opt in now by voting yes and will receive the 72.5% payout. Custody claims can vote yes or no independently from other account votes.

Class Action Claim Settlement

Item 8 covers the class action claim settlement. All users will get a 5% bump to their claim amount unless they choose to opt out. Bennett strongly recommends accepting the settlement and not opting out. Opting out will delay payouts and require separate litigation to prove claims.

Contribute Claims to Litigation Trust

Item 11 allows users to assign potential personal claims against Celsius management or others to the litigation trust. Any proceeds from those claims brought by the trust will be distributed pro rata to all creditors. Bennett recommends contributing claims to maximize collective recovery.

Avoidance Action Settlement

Item 12 covers the clawback avoidance settlement. Users who vote yes, do not opt out of releases, and have less than $100k in preference exposure will not face any clawbacks. Those above $100k can repay 27.5% of their exposure to also receive a release. Bennett says those interested in exploring a set-off option of repaying via their claim distribution should indicate so.

Voting on the Plan

Item 9 is the actual vote on whether to accept or reject the plan. Bennett recommends creditors accept the plan based on the terms outlined. Any elections made will automatically register an accept vote.

Releases

Item 10 covers granting releases to Celsius which Bennett recommends accepting. Opt outs are restricted for those who vote yes. Users should review the details and carve outs closely.

That covers the key points from Aaron Bennett’s Celsius creditor voting guide video. His aim is to provide an informative walkthrough so account holders understand their options and can cast informed votes on the bankruptcy plan. While Bennett provides his recommended choices, he notes that creditors should carefully review the materials and make voting decisions based on their personal financial situations and goals.