Celsius to Pursue Recovery of 2 Billion Currencies from Customers Prior to Bankruptcy, Approximately 2% of Platform Users to be Affected

Celsius to Pursue Recovery of 2 Billion Currencies from Customers Prior to Bankruptcy, Approximately 2% of Platform Users to be Affected

Celsius to Pursue Recovery of 2 Billion Currencies from Customers Prior to Bankruptcy, Approximately 2% of Platform Users to be Affected

According to a report by Bloomberg on March 20th, the bankruptcy trustee of Celsius has started contacting customers who withdrew more than $100,000 from the platform before its closure in order to claw back potential outflows and compensate customers who were unable to withdraw funds in a timely manner. According to the trustee, this clawback is expected to affect 2% of Celsius customers who collectively withdrew 40% of the company’s assets within 90 days prior to the filing of Chapter 11 bankruptcy.

If the affected customers decide to reach a settlement, the trustee will offer a “favorable interest rate.” However, if they fail to cooperate with the fund recovery process, legal actions will be taken by the company. Additionally, customers who agree to the settlement will have their nominal digital assets adjusted based on their value in July 2022, which was a low point in the cryptocurrency market. This means they can retain any capital appreciation since the market recovery.