The bankruptcy management team of Celsius submitted court documents this week, indicating that account holders who withdrew assets worth over $100,000 within 90 days before Celsius announced bankruptcy will face debtor “clawback” actions.
The documents reveal that debtors will soon send letters to the relevant accounts instructing them to return 27.5% of the withdrawn amount.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. On the contrary, if the account holders refuse to comply, debtors will take legal action.
Alan Rosenberg, partner at Markowitz Ringel Trusty & Hartog law firm, stated that users who withdrew less than $100,000 do not need to return the withdrawn funds.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 waiver provisions included in the plan.