Odaily Planet Daily News: The litigation administrator of bankrupt cryptocurrency lender Celsius Network has filed legal action against account holders who have not settled debts related to priority transfers within 90 days before the company filed for bankruptcy. The lawsuit was filed in the U.S. Bankruptcy Court for the Southern District of New York against people with a withdrawal priority exposure (WPE) of more than $100,000. Previously, Celsius had successfully reached a settlement with more than 1,500 account holders and recovered nearly $100 million. The settlement agreement resolved more than $500 million in priority debt and provided significant relief to eligible Celsius creditors. Mohsin Meghji, litigation administrator for Celsius, said: "Account holders who withdrew funds before Celsius' bankruptcy received unfair benefits, affecting other account holders. These people had ample opportunity to settle at preferential rates. Now, we will recover the full value of the cryptocurrency transferred during the priority period in accordance with the provisions of the Bankruptcy Code." The large number of withdrawals during the priority period (April 14, 2022 to July 13, 2022) caused the company to have a serious financial imbalance, and the company eventually filed for bankruptcy after the priority period. (Cryptoslate)
