Celsius attempts to recover funds withdrawn by creditors in pre-bankruptcy period
Creditors who withdrew more than $100,000 from Celsius within three months prior to its bankruptcy will have to return part of those funds or risk legal action, as per a recent creditor notice. Bankruptcy administrators for Celsius announced on Jan. 9 a plan to inform creditors that those who withdrew over $100,000 in the 90 days leading up to the bankruptcy announcement on July 13, 2022 could be obligated to return these funds. The filing indicates that account holders with withdrawal amounts exceeding $100,000 who did not oppose the reorganization plan and who did not waive their rights can resolve their liability by repaying 27.5% of the withdrawn funds by Jan. 31, 2024. To participate in this settlement, account holders must submit their intent through an election form by Jan. 25, 2024. Those who comply with the settlement will be exempt from further legal challenges and will benefit from the distributions outlined in the reorganization plan. Account holders failing to meet ...