Celsius’ Eligible Custody Users Will Be Able To Withdraw 94% Of Their Assets

Key Points:

• Celsius has provided an update on the upcoming withdrawal process for certain assets in certain margin accounts.
• Before that, eligible users will be required to update their Celsius account with some required information.
• At this point, qualified margin users will be able to withdraw approximately 94% of the qualified margin assets.

The start of customer withdrawals will happen in the next few days, according to the insolvent cryptocurrency lender Celsius.

Celsius noted that the withdrawal would only be for specific assets in specific custodial accounts in a more than 1,400-page court filing that was posted on Twitter early this morning.

Before any withdrawals are authorized, Celsius stated that eligible customers would be prompted to update their accounts with some necessary details for security and regulatory purposes. The requested information comprises customer information pertaining to Know Your Customer and Anti-Money Laundering regulations, as well as specifics on the withdrawal’s destination address.

It further said that these consumers could only withdraw about 94% of their admissible custodial assets. The court would also rule if they may subsequently pay out the remaining funds, according to the document.

The document also mentions that the court will decide if eligible customers will be permitted to withdraw the final 6% of the assets at a later time; thus, it is not yet known whether this will be the case.

Additionally, before February 15, all Celsius customers may anticipate messages through email and the app advising them of their eligibility.

Due to severe market conditions, Celsius Network has been preventing clients from accessing their money since June 2022, not long after Terra Luna’s projects failed. The crypto lender declared bankruptcy in July with around $167 million in cash on hand, $4.3 billion in assets, and a debt to customers of about $4.7 billion.

This week, a court-appointed examiner criticized Celsius and its former CEO, Alex Mashinsky, for poor risk management and deceiving customers about their operations and financial standing.

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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Harold

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