The bankruptcy management team of Celsius has submitted court documents this week, revealing that account holders who had assets worth over $100,000 within 90 days before Celsius announced bankruptcy will face a “clawback” by the debtor.
According to the documents, the debtor will soon send letters to the relevant accounts, instructing them to return 27.5% of the withdrawn amount. If the account owners comply with this instruction, they will still be eligible for asset distribution under future restructuring plans. On the contrary, if the account owners refuse to comply, the debtor will take legal action against them.
Markowitz Ringel Trusty & Hartog partner Alan Rosenburg stated that users who withdrew less than $100,000 do not need to refund their withdrawn funds. However, even if they do not need to refund, these users still need to vote in support of the bankruptcy restructuring plan and cannot choose to opt-out of any legal exemptions included in the plan.
