Celsius Network, the bankrupt crypto lending platform, recently announced a withdrawal process for its creditors who had their assets stored in its custody after it halted withdrawals and filed for bankruptcy last year.
As the bankrupt lender said in a January 31 update, a list of eligible users has been published and the unveiled individuals will be able to withdraw about 94% of qualified custody assets. In addition, users will be able to withdraw, as well as, have access to the remaining 6% on a later date which the US Bankruptcy Court will decide.
Celsius Condition to access withdrawals
In order to have access to their funds, qualified users will have to update their Celsius account by providing certain mandatory information. The information must be in line with Anti-Money Laundering (AML) and Know Your Customer (KYC) details, and the user will also have to provide the address of the destination of the withdrawal. Until the above-listed requirements are fulfilled, eligible users will be unable to withdraw custody assets from the debtor’s platform.
Additionally, a withdrawal fee list has been provided and users will be charged for each transaction at a time irrespective of the value of assets involved. To this end, no user is allowed to withdraw digital assets except if the individual’s account balance is sufficient enough to cover the withdrawal fees.
Celsius Network plans to restructure
Recall that last year, the embattled crypto lender announced that it got approval from the court to extend its exclusivity period to submit a chapter 11 plan of restructuring until February 15, 2023.
Interestingly, the platform intends to utilize the extension period to build up a strategy for private businesses, and source out every profitable opportunity open to the firm, solely for the benefit of its customers and stakeholders.
At the time the crypto lender halted withdrawal, it had up to 100,000 listed creditors, and according to the assets declared, it had between $1 billion to $10 billion in deficit. Fortunately for the platform’s custody account holders in December, the US bankruptcy judge ordered the bankrupt firm to return about $50 million worth of crypto assets to them. Although the ruling was only applicable to customers with non-bearing interest accounts.
