Celsius seeks to claw back $2B in customer withdrawals: Report
The move would allegedly serve as an equity remedy to repay customers who did not withdraw their funds in time before Celsius’ collapse.
Bankrupt crypto lender Celsius seeks to claw back $2 billion from major customers who withdrew from the platform shortly before its bankruptcy in July 2022.
According to a March 20 Bloomberg report, a Celsius bankruptcy oversight committee has begun contacting customers who withdrew more than $100,000 prior to its collapse, with the goal of using potential returned funds to pay back customers who did not withdraw from the platform in time. As per stated by trustees, the clawback is expected to affect 2% of Celsius customers who collectively withdrew 40% of the firm's assets at the eleventh hour before its bankruptcy filing.
The committee will offer clawback-affected customers a "favorable rate” if they decide to settle, with the threat of litigation if funds are not returned. In addition, customers who settle will have their notional digital assets adjusted based on their July 2022 value, near the nadir of the crypto bear market, allowing them to keep whatever capital appreciation resultant from the market recovery.
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