News - Celsius sues customers who withdrew money before bankruptcy

By Mike Hesp

Celsius sues customers who withdrew money before bankruptcy

Celsius continues to compensate creditors. Former customers must now repay money that was used for the bankruptcy was included.

The crypto lending platform Celsius is suing users who withdrew funds within 90 days prior to the bankruptcy.

"In the days before the bankruptcy of Celsius, account holders profited at the expense of other account holders by withdrawing funds, as Celsius was unable to adequately process other withdrawal requests," reads the press release.

The trustees are now demanding repayment of "the full value of the cryptocurrencies" that were included.

"Involved are account holders with preferential claims." These users had "sufficient time and opportunity" to withdraw their cryptocurrencies, according to Celsius.

The amounts collected in this way will benefit the entitled creditors of Celsius, it further states.

In July 2022, Celsius filed for bankruptcy after it halted payouts on its platform. The company's former CEO, Alex Mashinsky, is accused of fraud and market manipulation by U.S. prosecutors. He faces trial in September.

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