Attention Celsius Creditors! Users who withdrew over 100,000 EUR within 90 days prior to bankruptcy will face “Clawback”

Attention Celsius Creditors! Users who withdrew over 100,000 EUR within 90 days prior to bankruptcy will face "Clawback"

Attention Celsius Creditors! Users who withdrew over 100,000 EUR within 90 days prior to bankruptcy will face "Clawback"

The bankruptcy management team of Celsius submitted court documents this week, which indicate that account holders who filed claims for assets worth over $100,000 within 90 days prior to Celsius declaring bankruptcy will face the debtor’s “clawback” action.

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to the documents, the debtor will soon send letters to the relevant accounts, instructing them to return 27.5% of the withdrawn amount.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 holders comply with this instruction, they will still be eligible for asset distribution under future restructuring plans. Conversely, if the account holders refuse to cooperate, the debtor will take legal actions against them.

Allen Rosenburg, partner at Markowitz Ringel Trusty & Hartog law firm, also stated that users who withdrew less than $100,000 do not need to return the withdrawn funds. However, even though they are not required to refund, these users still need to vote in support of the bankruptcy restructuring plan and cannot opt out of any legal exemption clauses included in the plan.