- Funds withdrawals by Celsius custody account holders started on March 2.
- The withdrawals are opening about 8 months after the crypto lender filed for bankruptcy in June last year.
- The withdrawals were reopened for “Distributable assets in certain Custody Accounts.”
Eight months after filing for Chapter 11 bankruptcy in the US, bankrupt crypto lender Celsius Network has finally allowed custody account holders to start withdrawing some of their assets. This comes a month after Celsius published a list of customers eligible for withdrawals.
It all started at the beginning of December 2022 after Celsius was ordered by a US Bankruptcy Judge to return cryptocurrencies worth about $44 million to its custody program customers. This was followed by another ruling that allowed Celsius to auction some of its assets including the Celsius retail platform and mining business.
Towards the end of January 2023, Celsius received another approval from the US bankruptcy court allowing it to return funds transferred to the platform after the company filed for Chapter 11 bankruptcy in July 2022. At the same time, the crypto lender also got approval to go ahead with its planned Flare token airdrop to eligible holders of Ripple (XRP) on the platform.
Withdrawals started on March 2
Celsius on March 2 shared a tweet stating that it was reopening withdrawals for “Distributable Assets in certain Custody Accounts.”
The crypto lender then went ahead to add that “Eligible Users are being notified of the steps needed to facilitate their withdrawals”
Eligible Users are being notified of the steps needed to facilitate their withdrawals. Users can find additional information about the withdrawal process on our FAQ blog: https://t.co/OvVJgV5GrP
— Celsius (@CelsiusNetwork) March 2, 2023
Since the withdrawals started, overjoyed customers have been sharing their withdrawal stories on Twitter and Reddit seeing that the withdrawals resumed 263 days after the company filed for bankruptcy.
As previously stated by Celsius, eligible customers are only allowed to withdraw 94% of their funds with the fate of the remaining 6% depending on the outcome of the ongoing court hearings.
Share this article
Categories
Tags
Read More
For the first time since filing for bankruptcy in May, Celsius Network customers have begun to recoup their original investments. In a statement released yesterday, Celsius Network’s team have confirmed that the withdrawal of funds is now in progress and its members can withdraw their original investments in their CEL tokens.
Celsius Network, a popular crypto lending platform, filed for bankruptcy in May 2020 after suffering substantial financial losses due their heavy investments in high-risk projects and their failure to pay back its customers. Since then, Celsius has taken a number of measures to increase liquidity and capitalize on additional resources to provide for its customers. As part of their fundamental principles of trust and transparency, Celsius Network promised to pay back their customers in full and to honour their original investments first.
Yesterday, the announcement from the Celsius Network team indicated that customers could begin to withdraw their investments starting immediately. This comes only eight months after the bankrutpcy filing and is a great sign of progression and trust towards recoupment of customer’s investments.
Celsius’ statement reads, “As a service to our beloved customers, we are now beginning to honor requests to withdraw their original investments. Our customers will be able to withdraw their investments in two phases, with Phase 1 beginning immediately. Withdrawals for Phase 1 will be processed via the same method of deposit and in the same form. In addition to the repayment of their original investments, Celsius customers are also eligible for a 20 percent bonus on their refunds as a gesture of goodwill.”
Although the repayment of customers’ investments is a positive step forward for Celsius Network, the repayment process is only in Phase 1 and will take several months to complete. In the meantime, the Celsius team have stated that the process will be monitored and updated regularly to ensure that customers are informed of the status of their investments.
It is a great relief to see Celsius Network forthcoming in their commitment to honour customer investments. The repayment of funds is a testament to the resilience of Celsius Network and will no doubt provide a boost of trust towards future investments.
