Bankrupt cryptocurrency lending firm Celsius announced the reopening of distributable assets in certain custodial accounts.
After the update, some customers took to social media to reveal that they could withdraw funds for the first time since the lender halted its services last June.
He development It comes one month after the United States Bankruptcy Court for the Southern District of New York authorized Celsius to reopen withdrawals for certain clients with assets in Custodial Accounts.
Withdrawal Criteria
Clients who meet certain eligibility requirements set forth in the court filing are only eligible for the process. For example, “pure” custodial account assets that were never in the Earning Program or Loan Program and were transferred directly to the Escrow Program will be able to withdraw their funds from the lender. Additionally, there is no limit to the number of digital assets that are eligible for withdrawal in this category.
On the other hand, Celsius is authorized to enable withdrawals for users with aggregate transferred custody assets below $7,575. This amount is defined by section 547 of the Bankruptcy Code.
“Transferred” custody assets are essentially those assets that were transferred from the Earn or Loan Program to the Custody Program in the 90 days prior to the bankruptcy filing. As such, clients with aggregate transferred assets greater than the amount mentioned above cannot withdraw at this time.
According to a previous update, both current and former Celsius employees and affiliates, including “insiders,” have not been allowed to withdraw assets.
delays and delays
customers had reported receiving an email a few weeks ago detailing who was eligible to withdraw their funds.
Those whitelisted must update their KYC and AML details to start the withdrawal process. Those who are not verified will not be able to apply. Additionally, transaction fees are imposed on each withdrawal.
While many breathed a sigh of relief, some users have experienced delays in processing their requests as a result of a backlog of pending withdrawals. With the backlog of removal requests, Celsius has been turning them into support tickets.
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