Celsius Creditors Required to Return Funds or Face Legal Action

According to Foresight News, Celsius bankruptcy administrators have informed creditors that those who withdrew more than $100,000 from Celsius within three months before July 13, 2022, the day Celsius declared bankruptcy, must return a portion of the funds or face legal action. The documents state that Celsius will soon send letters to the relevant accounts, instructing them to pay 27.5% of the withdrawals made during the affected period. If they comply, they will be eligible for future distributions under the restructuring plan. Users who withdrew less than $100,000 do not have to return the money, but they still need to vote to accept the plan instead of opting out of it. Foresight News previously reported that Celsius declared bankruptcy on July 13, 2022. In September 2023, creditors approved a restructuring plan, according to which holders of custodial accounts would receive 72.5% of their held Bitcoin and Ethereum, while holders of interest-bearing accounts would receive a combination of cryptocurrency and shares in a new mining company. In November, Celsius emerged from bankruptcy and opened withdrawals for eligible creditors.