The Celsius files intend to repatriate certain funds prior to bankruptcy.
Lenders of failed crypto lender Celsius, which withdrew large sums of money from its platform before declaring bankruptcy, may be required to repay part of those funds or face legal action.
On Jan. 9, Celsius' bankruptcy trustees proposed notifying creditors that account holders who spent more than $100,000 in the 90 days before the company's July 13, 2022, bankruptcy filing date may need to pay back.
Account holders with “exit option exposure” of more than $100,000, who did not vote to reject the reorganization plan and did not opt out of the releases, could settle their liability by January 27.5, the filing said. 31, 2024.
Those seeking settlement must submit an election form indicating their willingness to make the settlement payment by January 25.
Accountholders will be notified of all dispositions and distributions under the Plan of Reorganization.
Those who do not settle by the deadline will be dealt with by the Administrators and may be sued to reclaim their accepted withdrawals.
“Any opt-out exposures that are not resolved by January 31, 2024, will be dealt with by the Litigation Administrator by special correspondence or other action after the effective date,” the filing said.
In the year At the end of November 2023, Celsius administrators offered eligible participants the opportunity to withdraw some of their cryptocurrency holdings.
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Celsius is actively dissolving and extracting Ethereum in preparation for “timely distribution to creditors.” According to Nansen, the exit queue is currently 20.3%, with 112,037 Ether (ETH) worth approximately $266 million.
In the year In November 2023, the company announced a balanced post-bankruptcy strategy focusing on Bitcoin mining, which was approved by the judge presiding over the bankruptcy process in late December.
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