According to Cryptoslate, the bankrupt cryptocurrency lending company Celsius Network has begun taking legal action against account holders who made significant withdrawals (over $100,000) within 90 days prior to the company’s bankruptcy filing but refused to reach a settlement with the company. As reported earlier by Zombit, Celsius’s bankruptcy oversight committee has been contacting platform customers who withdrew over $100,000 from the platform before the company’s collapse since March, with the aim of reclaiming (Clawback) those potential outflow funds to repay customers who did not withdraw in time. According to the trustee at the time, this recovery is expected to affect 2% of Celsius customers, who collectively withdrew 40% of the company’s assets within 90 days before Celsius filed for Chapter 11 bankruptcy. It is reported that Celsius has currently reached settlements with over 1,500 account holders regarding priority debt issues exceeding $500 million and successfully recovered nearly $100 million, bringing significant relief to Celsius creditors. Celsius’s litigation manager Mohsin Meghji explained that a large number of withdrawals between April 14, 2022, and July 13, 2022, severely destabilized the company’s financial situation, ultimately leading to the subsequent bankruptcy filing.
