Bankrupt crypto lender Celsius is on a mission to get back $2 billion. They're eyeing larger customers who pulled out their cash right before the July 2022 bankruptcy — A Bloomberg report from March 20 explained. The goal is to pay back those who couldn't withdraw in time.
They're reaching out to users who withdraw more than $100,000. This group represents 2% of their customers, but they nabbed 40% of Celsius' funds before the crash. The offer? A good deal for returning the funds, or a court fight if they don't. Plus, a bonus: they'll adjust the value of the returned digital assets to July 2022's low, letting customers keep any gains since then.
By January 31, Celsius turned a new leaf, handing out over $3B in crypto and cash with approval from 98% of its creditors. Yet, some businesses are miffed, saying they're getting short-changed with cash instead of crypto.
Alongside, the firm settled fines worth $4.7B with U.S. regulators. Alex Mashinsky, the former CEO, stepped down in September 2022. By July 2023, he faced seven felony charges, including fraud, but is currently not in custody after paying its $40M Bail.
