Celsius Litigation Administrator Commences Litigation Against Non-Settling Account Holders to Recover Full Value of Transfers Made During the Preference Period
2024年7月2日 - 10:49PM
ビジネスワイヤ(英語)
Litigation Follows Settlement with Over 1,500
Account Holders and Recovery of Nearly $100 Million
Non-Settling Account Holders Can Expect
Vigorous Pursuit in Court by the Litigation Administrator
On July 1, 2024, the Celsius Litigation Administrator (the
“Litigation Administrator”) began filing complaints in the United
States Bankruptcy Court for the Southern District of New York
against Celsius account holders with more than $100,000 of
Withdrawal Preference Exposure (“WPE”) who have failed to settle
their preference liability. The Litigation Administrator is
pursuing the return of preferential transfers (i.e., transfers made
in the 90 days prior to the date that Celsius commenced its
bankruptcy proceeding – between April 14, 2022, and July 13,
2022).
Amounts recovered through settlement and the litigation process
will serve to benefit eligible Celsius creditors, as provided by
the Celsius plan of reorganization.
“Account holders who withdrew funds in the days leading up to
Celsius’ bankruptcy have unfairly benefitted at the expense of
other account holders since fulfillment of their withdrawal
requests resulted in Celsius being unable to equitably fulfill
other withdrawals,” said Mohsin Meghji, The Celsius Litigation
Administrator. “Account holders with preference liabilities have
had ample time and opportunity to settle their preference
liabilities at a favorable rate; however, as the settlement offer
has since expired, now we intend to pursue the recovery under the
Bankruptcy Code of the full value of cryptocurrency transferred
during the preference period by these account holders.”
The previous settlement offer resulted in the recovery of nearly
$100 million and the resolution of more than a half billion dollars
of preference liabilities through settlement agreements with over
1,500 account holders.
Account holders with outstanding preference liabilities will be
responsible for paying their own legal costs and expenses related
to defending the litigation. Stakeholders with questions can refer
to cases.stretto.com/CelsiusLOC, which will be updated on an
ongoing basis as needed.
Advisors
White & Case LLP and ASK LLP are serving as legal
co-counsel, M3 Partners is serving as Litigation Administrator, and
C Street Advisory Group is serving as strategy and communications
advisor to the Litigation Administrator.
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version on businesswire.com: https://www.businesswire.com/news/home/20240701763997/en/
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