CoinDesk reports:
On July 1st, the government overseeing the bankruptcy of Celsius, which has now collapsed, filed legal action against users who withdrew funds within 90 days prior to the company’s closure.
According to Business Insider, the trustee for Celsius filed complaints in the Southern District of New York against holders of withdrawal benefits exceeding $100,000. These investors successfully withdrew funds within 90 days before the commencement of bankruptcy proceedings between April 14, 2022, and July 13, 2022.
Over 1,500 account holders now face potential recoveries totaling up to $100 million.
Mohsin Meghji, trustee for Celsius, stated, “Account holders who withdrew funds in the days leading up to Celsius’ bankruptcy obtained unfair advantages at the expense of other account holders, as fulfilling their withdrawal requests unfairly prevented Celsius from equitably fulfilling others.”
Celsius, a lending platform, halted withdrawals in June 2022 and filed for bankruptcy amid market turbulence following the collapses of Terra and Luna.
Affected users, possibly subject to legal action, expressed concerns to X, stating they are being sued for legitimate use of the platform, alleging the company’s legal team is seeking to recover funds using current market prices, not those at the time of the company’s collapse.
In June 2022, the average price of Bitcoin was $24,000, over 50% lower than current asset values.
One affected account holder, using the alias “med0x,” wrote on X on July 5th, “We are ordinary people who used the platform as intended, not insiders or wrongdoers, and now they are trying to reclaim all these funds and more because we happened to withdraw our money 90 days before they announced bankruptcy, using June 14, 2024 market rates instead of 2022 rates.”
The trustee for Celsius did not immediately respond to The Defiant’s request for comment.
