Celsius Asks Creditors With Over $100,000 Withdrawn 90 Days Before Bankruptcy to Return Some Funds

According to the notice issued by Celsius' bankruptcy trustee to creditors, Celsius creditors who withdrew more than $100,000 from Celsius within three months before July 13, 2022 (the day Celsius declared bankruptcy), will be required to return a portion of the funds or may face legal action.

The notice states that Celsius will soon send letters to the relevant accounts, instructing them to pay back 27.5% of the withdrawn amount during the affected period. Those complying with these terms will be eligible for future distributions based on the restructuring plan.

Moreover, users who withdrew amounts less than $100,000 are not required to return the funds. However, they still need to vote to accept the plan rather than opt out.

Previously, in December 2023, Celsius successfully received approval for its restructuring plan from the New York bankruptcy court and will continue focusing on implementing its Bitcoin mining plans.

Celsius announced on the X platform that the MiningCo transaction is considering establishing a new publicly traded Bitcoin mining company and plans to increase the distribution of liquid cryptocurrencies to account holders post-Celsius' emergence from bankruptcy, expected to occur in early 2024.

Additionally, Celsius revealed that customers will possess shares of Mining NewCo, a company managed by US Data Mining Group, Inc. d/b/a US Bitcoin Corp (USBTC). Users eligible for the liquidity distribution will receive detailed emails explaining the relevant details in the coming weeks.