Celsius is aiming to recover $2 billion from customers who withdrew funds before the company declared bankruptcy in July 2022. The lawsuit comes after a Bloomberg report saying that a bankruptcy monitoring committee contacted consumers who had made withdrawals of more than $100,000, resulting in the collapse.
If the targeted parties do not comply, they risk facing legal action and receiving an advantageous settlement offer. Clients who settle will be able to retain capital gains from a market recovery since their digital assets will be updated to reflect July 2022 valuations.
Before the company filed for bankruptcy, 2% of its clients removed 40% of its assets. Potentially recovered funds are meant to be utilized by the committee to compensate clients who failed to withdraw on time.
Following its bankruptcy, Celsius began dispersing more than $3 billion to customers, as approved by 98% of creditors. When compared to cryptocurrencycurrency payments, some business creditors are concerned about getting fiat payouts, which might reduce claims by 30%. The corporation also settled fines with various US regulatory bodies.
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