The embattled crypto lender has filed an intent to claw back funds from those who withdrew $100,000 or more in the three months before it declared bankruptcy.
Creditors of the bankrupt crypto lender Celsius that withdrew large sums from the platform before it declared bankruptcy may be required to return part of those funds or face legal action.
On Jan. 9, Celsius bankruptcy administrators filed an intent to notify its creditors that account holders who withdrew more than $100,000 in the 90 days before the date the company declared bankruptcy — July 13, 2022 — may be required to return them.
The filing stated that account holders with “withdrawal preference exposure” over $100,000 who are not excluded parties, did not vote to reject the reorganization plan, and did not opt out of releases can settle their liability by paying 27.5% of the funds by Jan. 31, 2024.
