Eligible Celsius Users Can Withdraw 100% Of Allotted Custodial Assets
Celsius, the bankrupt crypto lender, has received approval from the court to distribute the remaining 6% of escrow assets, which can be allocated to qualified users. This will bring the total amount of custodial assets that can be withdrawn by eligible users to 100%. Earlier, qualified users were only allowed to withdraw 94% of their distributed custodial assets. Additionally, customers who had transferred funds from an earned or borrowed account to a custodial account can now withdraw 72.5% of their funds, up to a maximum of $7,575.
Celsius has been authorized to distribute 100% of each eligible user’s Distributable Custodial Assets, minus transaction fees, following the court’s approval of their Settlement regarding Custody claims with the Ad Hoc Custodian Account Holders Group and the Commission on March 21, 2023.
The Distribution Schedule specifies the list of eligible customers for withdrawals, and Celsius has notified them via email and in-app notifications. However, eligible users must update their C account with the necessary information before any withdrawals are processed, due to security and regulatory reasons. Customers can stay informed about the process through the Celsius app.
On March 2, the company announced that customers could withdraw their assets from the platform for the first time since June.
Hoboken, New Jersey-based Celsius filed for bankruptcy in July 2022. Customer assets have been locked in withdrawals since June, and the company owes its 1.7 million customers about $4,7 billion.
Following the Terra/Luna crash, the lending platform was among the first major crypto companies to file for bankruptcy. Its ex-CEO, Alex Mashinsky, is facing a lawsuit from New York attorney Letitia James, who claims that he cheated hundreds of people, including thousands of investors, out of billions of dollars. Mashinsky is currently battling the allegations and has not accepted any charges.
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