The Celsius platform called on creditors to return part of the withdrawn funds to it
Kirkland & Ellis (K&E) attorneys representing Celsius contacted platform customers who cashed out more than $100,000 shortly before the company was able to freeze the funds. Lawyers called such withdrawals of funds “circumventive actions” and called on creditors to return 27.5% of the withdrawn amount by January 31. K&E warned that if these creditors do not “resolve their outstanding obligations,” the platform could sue them.
The notice, issued by Celsius' legal team, comes as part of preparations for the payment of debts to creditors in accordance with the terms of the restructuring. Celsius became the first player in the crypto space to make a similar “unsecured creditors” argument in court as a way to raise funds. In August, a New York court allowed the platform to mine and sell bitcoins during bankruptcy proceedings to obtain an alternative source of profit.