
A special group is taking care of the bankruptcy and they’re the ones sending out letters to these customers, based on a report from Bloomberg. They want to get this money back so they can share it fairly among the people who didn’t take their money out of Celsius when things got tough.
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- The Celsius Network, a company that lends out cryptocurrency, has run into big trouble and is now asking for a huge amount of money back.
- They want over $2 billion returned from people who took their money out before the company had to declare bankruptcy.
- They’re particularly looking at the big withdrawals, over $100,000, made from April 14 to July 13, 2022.
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Celsius Network Wants Its Money Back After Going Bankrupt
Why They’re Asking for the Money Back
Someone who got one of these letters talked about it online. They said that it was only a very few people, less than 2%, who took out almost half of all the money Celsius had. The letter said this wasn’t fair to the rest.
What’s Going to Happen Now?
Celsius is using a rule called the clawback provision. This helps make sure when a company doesn’t have enough money to go around, what it does have is split up fairly. They’re telling people if they agree to give back some money now, they’ll get a good deal. But if they don’t, they might have to go to court and could end up giving back even more. Back in January, Celsius had already said they might need to ask for some money back from people who took out a lot before they went bankrupt.
What’s happening with Celsius shows how complicated things can be with cryptocurrency. We invite you to sign up for our newsletters so you can keep up with this story and other interesting ones.
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