Celsius Network takes legal action to recover funds withdrawn before bankruptcy
The litigator of the bankrupt cryptocurrency lender Celsius Network has filed a lawsuit against account holders who have not settled their debt related to priority transfers within 90 days before the company filed for bankruptcy. The lawsuit, filed in the U.S. Bankruptcy Court for the Southern District of New York, is aimed at people who have withdrawn more than $100,000 in priority risk exposure (WPE).
Celsius has successfully settled with over 1,500 account holders to recover nearly $100 million. The settlement resolves over $500 million of senior debt and provides significant relief to eligible Celsius creditors.
The large number of withdrawals during the priority period (April 14, 2022 to July 13, 2022) caused the company to experience a serious financial imbalance, and the company eventually filed for bankruptcy after the priority period.