Bankrupt crypto lender, Celsius Network, announced yesterday that it had begun allowing withdrawals of client assets from its platform. This development is a significant step towards repaying its customers’ money. However, withdrawals are only permitted from certain custody accounts, and certain account owners are not permitted to request withdrawals.
According to Celsius, only users with assets in the custody account or who transferred from the Earn or Borrow program into the custody accounts 90 days before the company filed for Chapter 11 bankruptcy are eligible for withdrawal. Customers who meet these criteria have been notified via email by the company.
Certain custody account owners, however, cannot request withdrawals, including current and former company employees, customers with an active loan as of December 20, 2022, and users whose digital assets are less than the transaction fee required for withdrawal.
Celsius also stated that accounts would not be closed during this period, and there is no deadline for withdrawals. However, only 94% of the funds in eligible accounts can be withdrawn at the moment. Some of the firm’s followers on Twitter have reported being able to withdraw some of their money, while others are still having some difficulty doing so.
Celsius Network filed for Chapter 11 bankruptcy in July 2022 due to unstable market conditions. Since then, the company has been working towards refunding its customers.
Celsius Network was acquired by NovaWulf Digital Management, an investment firm, on February 15, 2023. NovaWulf’s plan for the bankrupt crypto lender is to invest millions of dollars and maximize remaining assets in order to end the Chapter 11 bankruptcy, repay customers’ money, and rebrand as a new company.
The process has already started with the withdrawal of assets from custodial accounts. Celsius customers can now access their funds, which is welcome news and a ray of hope for Celsius’s future under NovaWulf’s ownership.
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