Celsius Targets Withdrawals Made 90 Days Before Bankruptcy for Repayment
Last updated: January 9, 2024 23:43 EST . 1 min read
    
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The bankrupt crypto lender Celsius Network has notified its creditors that customers who made substantial withdrawals in the 90 days leading up to the bankruptcy declaration may need to return a portion of the funds or face legal consequences.
According to a notice published by Celsius bankruptcy managers on January 9, account holders who withdrew over $100,000 in the 90 days prior to July 13, 2022 (the date Celsius filed for bankruptcy), are subject to clawbacks.
Forthcoming letters to the affected account holders will instruct recipients to make a payment equivalent to 27.5% of the amount withdrawn during the specified period. Compliance with this request will render them eligible for future distributions under the reorganization plan.
According to a report from The Block, Alan R. Rosenberg, a partner at Markowitz Ringel Trusty & Hartog law firm, said the notice is directed at individuals with preference exposure exceeding $100,000, allowing them to “preemptively settle with the estate.”
Users who, in the months prior to the bankruptcy, withdrew less than $100,000 are not required to return the funds, but they still need to vote in favor of the plan and refrain from opting out of the releases outlined in the plan, Rosenberg further said.
Rosenberg highlighted that failure to comply with these instructions could lead to potential lawsuits against non-compliant individuals.
Celsius’ bankruptcy filing
Celsius Network filed for Chapter 11 bankruptcy following the collapse of the Terra blockchain ecosystem in mid-2022.
The compa noted at the time that it had anywhere between $1 billion and $10 billion in assets and liabilities and more than 100,000 creditors. Customer accounts on the platform had been frozen for about a month by the time the firm filed for bankruptcy.
Alex Mashinsky, Celsius Network’s former CEO, resigned from his position in June 2023.
The former CEO was arrested in July the same year but remained free on a $40 million bail.
Mashinsky is set to face a criminal trial beginning on September 17, 2024.
#crypto #trend #binance #bnbchain #btc

It has been a whole week since the U.S. Securities and Exchange Commission (SEC) approved Spot Bitcoin exchange-traded funds (ETFs) and unsurprisingly this has been a “sell-the-news” type of event.
Many cryptocurrency traders decided to use this event as the perfect opportunity to sell, according to South Korean data firm CryptoQuant.
The Spot Bitcoin ETF products started trading with record volumes for an ETF launch and additionally, Coinbase exchange saw record-high OTC desk transfer volumes. Most Bitcoin ETFs are trading at a premium to spot Bitcoin, reports CryptoQuant.
The data firm explains the approval of the Bitcoin ETFs would be a “sell-the-news” event, with price declining as much as 15% since January 11 from $48,70 to as low as $41,500.
During press time, Bitcoin was seeing support within the $41,000 and $43,000 range, although the possibility of a downtrend cannot be ruled out. Nonetheless, the crypto bellwether still maintains positive momentum, supported by several factors.
However, CryptoQuant notes that several on-chain metrics and indicators still suggest the price correction may not be over or at least that a new rally is still not on the cards. Short-term traders and large Bitcoin holders are still doing significant selling in a context of “risk-off” attitude.
US Spot Bitcoin ETFs See Massive Inflows 
The spot Bitcoin ETFs are seeing huge inflows having achieved a cumulative trading volume of nearly $10 billion within just three days, reports Ruholamin Haqshanas from Cryptonews.
According to Bloomberg analyst James Seyffart, the standout performer among the spot Bitcoin ETFs is Grayscale’s GBTC, which recorded an impressive three-day trading volume of $5.174 billion. BlackRock’s IBIT also saw substantial engagement, reaching $1.997 billion in trading volume, while FBTC recorded $1.479 billion during the same period. Together, these three ETFs accounted for an impressive $9.771 billion in trading volume, indicating strong investor interest in the cryptocurrency market.
ETFs are the Talk of the Town in Davos 
Once again the social elite are gathered in Davos for the World Economic Forum (WEF) – a global event bringing together the most influential players in politics and business to discuss the upcoming trends in business. Crypto attendees are showing signs of optimism this year all due to the SEC approving the ETFs.
“The recent ETF approval symbolizes a new era and the recognition of the potential of cryptocurrency and blockchain as a technology and as digital assets that can now be invested and supported more broadly by all types of investors,” said Sebastien Borget, COO and co-founder of The Sandbox, from Davos.
#btc #bitcoin #binance #tradinginsight #trend

This is the graph of #NUPL (Net Unrealised Profit/ Loss), the data shows the value slides above the 0, which shows the investor and hodlers just moving into the profit area. We already saw this happening earlier, in May, July, September of 2022, this could he the same, so be alert on our mentioned levels.

What's is #NUPL Data ?

Net Unrealized Profit and Loss (NUPL) is the difference between market cap and realized cap divided by market cap. Assuming that the latest coin movement is the result of a purchase, NUPL indicates the total amount of profit/loss in all the coins represented as a ratio. It could be interpreted as the ratio of investors who are in profit. Values over '0' indicate investors are in profit and an increasing trend in value means more investors are beginning to be in profit. This phase indicates the increasing reason to take profit which leads to an increase in sell pressure.

#Binance #crypto2023 #BTC #dyor #trend