Celsius Network Bankruptcy Advisors Seek Over $2 Billion in Withdrawals to Avoid Potential Lawsuits
According to PANews, advisors overseeing the gradual liquidation of Celsius Network LLC have requested the return of over $2 billion from major clients before the platform files for bankruptcy to avoid potential lawsuits. A supervisory committee established in Celsius' Chapter 11 bankruptcy case has begun contacting clients who withdrew more than $100,000 from the platform before the company's bankruptcy in July 2022. The assets recovered through this process will be used to repay creditors who have not withdrawn funds from Celsius. The committee stated that the recovery process would only affect about 2% of Celsius users, who collectively withdrew approximately 40% of the platform's assets within 90 days before the company filed for bankruptcy protection. At the time of filing for bankruptcy, Celsius reported having approximately $6 billion in assets, 1.7 million registered users, and 300,000 active users with account balances exceeding $100. The committee said that if clients who could potentially become targets of clawback lawsuits choose to settle, they will be offered 'preferential rates,' while clients who choose not to settle may be forced to return much higher amounts through potential litigation.