Celsius seeks $2B refund from customer withdrawals: Report
Bankrupt crypto lender Celsius is seeking to recover $2 billion from major clients who exited the platform shortly before its July 2022 bankruptcy.
According to a March 20 Bloomberg report, Celsius' bankruptcy oversight committee has begun contacting customers who spent more than $100,000 before the crash, with the goal of using the potential refunds to pay customers who didn't leave the platform in time. According to trustees, Clave was expected to affect 2% of Celsius' customers at the eleventh hour before filing for bankruptcy, which accounted for 40% of the company's assets.
If the committee decides to settle by threatening to sue if funds are not returned, Clawback will offer a “suitable amount” to affected customers. In addition, their customers in 2010 Based on their value in July 2022, they will receive an adjustment to their digital assets near the crypto bear market, allowing them to capture any capital appreciation from the market recovery.
On January 31, Celsius emerged from bankruptcy and began distributing more than $3 billion in crypto and fiat currency to users, achieving 98% approval by lenders. However, some business lenders claim that their fiat currency payments reduce their claims by 30% compared to crypto payments.
The company settled with the United States Federal Trade Commission, the Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission in settlements of $4.7 billion. CEO Alex Mashinsky will step down in September 2022. He was indicted in July 2023 on seven felony counts, including securities fraud, wire fraud and fraud in connection with his activities on the platform. He is free on $40 million bail at the time of publication.
Related: Celsius distributes $2B crypto to 172k lenders
