BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

Celsius Targets $2 Billion Recovery from Pre-Bankruptcy Withdrawals

by Sham
March 20, 2024
in BUSINESS, CRYPTO
Reading Time: 3 mins read
A A
3
SHARES
44
VIEWS
Share on XShare in TelegramShare on Reddit
  • Celsius is seeking to claw back $2 billion from major customers who withdrew funds shortly before its bankruptcy filing in July 2022 in order to repay other customers.
  • The clawback is targeting the 2% of Celsius customers who withdrew 40% of the firm’s assets right before bankruptcy. Customers are offered favorable settlement terms.
  • Celsius began redistributing over $3 billion to users in January 2023 as part of its bankruptcy exit plan, but some creditors complained about reduced fiat payouts.

Celsius, the bankrupt crypto lending platform, is seeking to claw back $2 billion from major customers who withdrew funds shortly before its bankruptcy filing in July 2022. This move aims to use the returned funds as an equity remedy to repay other customers who were not able to withdraw their assets before Celsius collapsed.

NEW: Bankrupt Celsius Network is attempting to claw back $2 billion from customers who withdrew large sums before its 2022 collapse pic.twitter.com/x4mBtAiP9E

— BlockNews.com (@blocknewsdotcom) March 20, 2024

Background on Celsius Bankruptcy

In July 2022, Celsius filed for bankruptcy after halting withdrawals on its platform amidst massive liquidity issues. This left many customers unable to access their deposited crypto funds on Celsius.

According to a March 20 Bloomberg report, a Celsius bankruptcy oversight committee has started contacting customers who withdrew over $100,000 prior to Celsius’s collapse. The goal is to use potential returned funds to compensate customers who did not withdraw in time.

Clawback Details

The clawback is expected to impact around 2% of Celsius customers, who together withdrew 40% of the firm’s assets right before its bankruptcy.

The committee will offer a favorable rate to affected customers if they agree to settle. However, those who do not return funds face potential litigation. In addition, settling customers will have their assets valued at July 2022 prices, allowing them to benefit from the crypto market recovery.

On January 31, Celsius began redistributing over $3 billion to users as part of its bankruptcy exit plan approved by 98% of creditors. However, some creditors have complained their fiat payouts reduce claims versus crypto.

Celsius Fallout

In September 2022, Celsius CEO Alex Mashinsky resigned amidst the fallout. In July 2023, Mashinsky was indicted on fraud charges related to his Celsius activities.

The firm also settled $47 billion in fines with various government agencies including the FTC, DOJ, SEC and CFTC.

Tags: Alex MashinskyCelsiusCelsius collapsedcrypto
Tweet1ShareShare
Previous Post

Magmic Unveils New MLB-Themed Web3 Game at Game Developers Conference

Next Post

Open Network Foundation Sets $115 Million in TON Tokens for Community Rewards

DON'T MISS THESE! HOT OFF THE PRESS

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself
CRYPTO

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape
CARDANO

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish
BITCOIN

$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish

July 18, 2025
Load More

Related News

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin US Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.