According to Cryptoslate, bankrupt cryptocurrency lending company Celsius Network has begun taking action against account holders who made large withdrawals (more than $100,000) in the 90 days before the company filed for bankruptcy but are unwilling to reach a settlement with the company. Legal action.

According to previous reports by Zombit, Celsius’s bankruptcy supervision committee began contacting platform customers who withdrew more than $100,000 from the platform before the company’s collapse in March, with the purpose of clawing back those potential outflows to repay those who did not withdraw from the platform in a timely manner. Customers making withdrawals. The pursuit was expected to affect 2% of Celsius customers who collectively withdrew 40% of the company's assets in the 90 days before the company filed for Chapter 11 bankruptcy, according to the trustee at the time.

It is reported that Celsius has now reached settlements with more than 1,500 account holders for more than $500 million in senior debt issues and has successfully recovered nearly $100 million, bringing significant relief to Celsius' creditors. Mohsin Meghji, Litigation Administrator at Celsius explains:

“Account holders who withdrew their funds shortly before Celsius filed for bankruptcy were unfairly advantaged, affecting other account holders who had ample opportunity to settle at preferential rates.”

The large number of withdrawals during the period from April 14 to July 13, 2022 caused a serious imbalance in the company's financial position, ultimately leading to the company filing for bankruptcy thereafter.

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