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Celsius Network: Retrieves $2 Billion in Customer Funds

Celsius Network: Retrieves $2 Billion in Customer Funds

TL;DR

  • Celsius Network plans to recover $2 billion of funds from its clients.
  • They will focus on select clients who withdrew around $100,000 before the platform collapsed.
  • This is part of a broader restructuring plan to repay funds to customers and creditors.

Celsius Network plans to recover $2 billion of funds from its clients.

They will focus on select clients who withdrew around $100,000 before the platform collapsed.

This is part of a broader restructuring plan to repay funds to customers and creditors.

Celsius Network has announced its intention to recover $2 billion in funds from its customers as part of its restructuring plan.

This measure will focus on select clients who withdrew around $100,000 before the platform collapsed.

The company, after emerging from bankruptcy on January 31, 2024, has begun distributing funds to its clients as part of a $3 billion repayment plan, approved by 98% of clients and the Court of Bankruptcy of the Southern District of New York.

Plan Administrator Chris Ferraro said Celsius priority has been to maximize value and speed to deliver the best outcome for creditors.

Since pausing withdrawals more than 18 months ago, the company has begun distributing more than $3 billion in cryptocurrency, fiat currency, and shares in Ionic Digital.

Celsius Network: Recovers $2 Billion in Customer Funds

However, this process will affect at least 2% of Celsius customers

Who collectively withdrew 40% of the company’s assets during the critical period before the collapse.

Celsius has begun contacting affected customers directly to discuss the details of the fund recovery plan.

They will be offered options according to “favorable” rates to avoid possible litigation.

Additionally, the company has appointed a Litigation Administrator who will focus on clients who collectively withdrew around $2 billion during the prime period, the 90 days before Celsius’ collapse.

This move by Celsius represents an effort to stabilize its operations, compensate affected parties and move forward after a period of financial turbulence.

The company seeks to restore the trust of its customers and strengthen its position in the cryptocurrency market by effectively implementing its restructuring and repayment plan.

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