Celsius Network Requests Account Holders to Return Funds
Celsius Network, a bankrupt cryptocurrency lending company, has filed a request with the United States Bankruptcy Court for the settlement of Withdrawal Preference Exposure (WPE). The filing, submitted on January 9, targets large investors who withdrew $100,000 or more worth of crypto within the 90 days leading up to the network’s bankruptcy petition date.
Settlement Order and Conditions
The court filing requires affected individuals with WPE of $100,000 or higher to make a settlement payment to Celsius Network or face legal action. Account holders meeting certain conditions will be notified via email about settling their liability. Those with WPE of $100,000 or less are exempt from making a settlement payment and will not receive an email.
Deadline and Payment Options
Celsius Network has set a deadline of January 31 for all settlement payments. Debtors must receive 27.5% of the WPE by this date. Account holders can settle their payments using cash, Bitcoin (BTC), or Ethereum (ETH).
Early Distributions and Legal Actions
Account holders who settle before the deadline will be granted a release of all avoidance actions and provided distributions under Celsius Network’s reorganization plan. Those who fail to settle may face legal actions to recover the preference they received.
Conditions for Settlement Deadline
Celsius Network has attached several strict conditions to the settlement deadline. Account holders planning to make settlement payments must submit an election form by January 25. Completed forms will be accepted starting from January 17.
The election form will disclose the resolved and remaining WPE settlement amounts. Early distributions are available for account holders settling their payments on or shortly after January 17. Payments made by January 31 may experience a delay in initial distributions.
Hot Take: Celsius Network Requests Account Holders to Return Funds
Celsius Network has taken a decisive step by requesting account holders who withdrew $100,000 or more worth of crypto within the 90 days leading up to the network’s bankruptcy petition date to promptly return the funds. This move comes as part of the company’s efforts to settle Withdrawal Preference Exposure (WPE) and ensure fair treatment for all creditors. Account holders have until January 31 to make their settlement payments, with the option to use cash, Bitcoin (BTC), or Ethereum (ETH). Failure to comply may result in legal actions to recover the preference received. It remains to be seen how this request will impact the ongoing bankruptcy proceedings of Celsius Network.
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