Celsius Reopens Withdrawals For Distributable Assets In Certain Custody Accounts

Key Points:

• Celsius officially announced to reopen of withdrawals. The statement will be effective starting on March 2, 2023.
• Eligible users whose Custody assets are less than the withdrawal transaction fees cannot withdraw assets. Moreover, customers who, in the aggregate, transferred over $7,575 from an Earn or other account into a Custody account cannot withdraw those assets.

Celsius, a crypto lending and borrowing platform had received court authorization to reopen withdrawals for certain customers with assets held in Custody Accounts. Today, the platform officially announced to reopen of withdrawals.

The announcement of reopening withdrawals was published on March 2, saying an act of reopening for Distributable Assets in certain Custody Accounts.

The first category includes “Pure” Custody Account Assets, assets that were never in the Earn Program or Borrow Program and transferred directly into the Custody Program. There is no cap on the amount of Pure Custody digital assets eligible for withdrawal.

The second category includes “Transferred” Custody Assets, which are assets that were transferred from the Earn or Borrow Program into the Custody Program in the 90 days before Celsius filed for Chapter 11 protection on July 13, 2022. Celsius is authorized to allow withdrawals for customers with aggregate transferred custody assets below $7,575.

Current and former employees, including “insiders” and affiliates of current and former Celsius employees, are not eligible to withdraw assets. Additionally, customers with an active loan as of December 20, 2022, are not currently eligible to withdraw assets from their Custody account.

Eligible users whose Custody assets are less than the withdrawal transaction fees cannot withdraw assets. Moreover, customers who, in the aggregate, transferred over $7,575 from an Earn or other account into a Custody account cannot withdraw those assets.

Celsius is authorized to distribute 94% of each Eligible User’s Distributable Custody Assets with fewer transaction fees. Celsius has settled Custody claims with the Ad Hoc Group of Custodial Account Holders and the Committee.

If the Court approves the settlement, Celsius will be authorized to distribute the remaining 6% of each Eligible User’s Distributable Custody Assets for 100% of each Eligible User’s Distributable Custody Assets.

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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Thana

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