Celsius Seeks To Return Funds To Customers

Bankruptcy crypto lender Celsius is seeking to return customer funds held in its Custody Program and Withhold Accounts, arguing that they do not technically belong to the company. Some customers may be getting their money back soon.

In the latest chapter of bankruptcy proceedings, Celsius requested court permission to release the funds of a select number of customers.

In the filing, Celsius argues that the digital assets held in its Custody Program and Withhold Accounts do not belong to Celsius by law, and it is “fair and appropriate” for customers to get these funds back.

As of August 29, there is approximately $210 million in the Custody Program (executed by approximately 58,300 customers) and $15 million in Withhold Accounts (executed by approximately 5,680 customers).

In the latest development, according to information from Bloomberg, Celsius has requested the permission of the US Bankruptcy Judge to release about $50 million of cryptocurrency trapped on the platform under the custody account designed to store crypto instead of making a profit.

A hearing has been set by the Southern District Bankruptcy Court of New York at 2 p.m. UTC on October 6 to discuss whether the motion should be resolved.

The bankruptcy filing has led to customer outrage, with some claiming on social media that they’ve lost their life savings because of Celsius. Celsius CEO Alex Mashinsky allegedly directed Bitcoin transactions with client funds on the advice of senior traders at the company.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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CoinCu News