Last Updated on January 10, 2024 by Bitfinsider
Celsius bankruptcy administrators told creditors that people who made substantial withdrawals in the 90 days before the crypto lender’s insolvency would have to refund a portion of the assets or risk legal consequences.
Account holders who withdrew more than $100,000 in the 90 days before July 13, 2022, the day Celsius filed bankruptcy, are subject to clawbacks, according to a notification released on Tuesday.
According to the document, letters will shortly be issued to the concerned accounts asking them to pay 27.5% of what they withdrew during the relevant time. If they comply, they will be eligible for future dividends under the restructuring strategy.
“This notice allows those with preferred exposure exceeding $100,000, which means they withdrew $100,000 or more within 90 days of the filing date, to proactively settle with the Estate for 27.5% of the amount they withdrew without being sued. “They still have to vote to accept the plan rather than opt out of the releases,” said Alan R. Rosenberg, a partner at Markowitz Ringel Trusty & Hartog.
Users who took less than $100,000 are not have to refund the funds, he said, but they must vote to approve the plan and not opt out of the releases under it.
“People who do not comply with the above could potentially be sued to recover the preferences they received,” he said.
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