Celsius asks users who withdrew funds before the platform went bankrupt to return their funds

Celsius threatened users with legal action if they did not return their money.

According to a recent announcement from bankruptcy lending platform Celsius, Accounts with withdrawals exceeding $100,000 in the 90 days before Celsius declares bankruptcy (before July 13, 2022) will be withdrawn. Therefore, these accounts must return 27.5% of the withdrawal amount to Celsius.

If Celsius’s requirements are followed correctly, these users’ funds will be reallocated in the future according to the company’s restructuring plan. However, if there are intentional violations, users may face property recovery lawsuits from Celsius.

For those withdrawing less than $100,000, They don’t have to repay the money, but they still need to vote and choose not to claim a refund under the restructuring plan.

It is understood that Celsius was severely affected by the Terra “disaster” and was forced to declare bankruptcy in July 2022.

In September 2023, creditors approved a reorganization plan under which escrow account owners would receive 72.5% of their BTC and ETH shares. By November 2023, the court officially approved Celsius Network to reopen its business. However, rather than lending out cryptocurrencies as before, Celsius has transformed into a creditor-owned Bitcoin (BTC) mining company.

In addition, as part of the recovery plan, Celsius will compensate users whose assets have been frozen on the platform. These users will receive cryptocurrency and shares in the new company. Celsius is expected to begin allocating assets in early 2024.

Recently, Celsius has been continuously transferring tokens to exchanges and pledging a large amount of ETH (approximately $800 million) in order to earn more funds to serve the debt repayment process. It can be seen that Celsius moved to pay expenses and prepare for distribution to creditors.

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