Key Points:
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The crypto lending company emerging from bankruptcy allows additional withdrawals for Celsius eligible custody users, limited to specific managed assets.
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The company refocuses its post-bankruptcy plans exclusively on Bitcoin mining.
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Former Celsius customers will receive a mix of cryptocurrency assets and stock in the new venture pending SEC approval for public listing.
In a significant development post-bankruptcy, Celsius Network, the cryptocurrency lending company, has announced that Celsius eligible custody users can now make additional withdrawals, effective immediately.
The Bankruptcy Company Resumes Withdrawals for Celsius Eligible Custody Users
However, Celsius eligible custody users need to be aware that only certain managed assets are currently available for withdrawal; all other cryptocurrencies remain inaccessible. Celsius urges users to promptly withdraw these assets from the application and secure personal records, as the application’s availability is limited.
The company has
revised its post-bankruptcy business plans, narrowing its focus exclusively to Bitcoin mining. This shift comes in response to skepticism from U.S. regulators regarding Celsius Network’s previously planned business lines. The Chapter 11 plan was approved by a U.S. bankruptcy court in Manhattan on November 9, enabling Celsius to return cryptocurrencies to customers and establish a new entity owned by Celsius creditors.
Former Celsius customers are set to receive a combination of cryptocurrency assets and stock in the new venture, slated for public listing pending approval from the U.S. Securities and Exchange Commission (SEC). The SEC retains the right to challenge crypto asset transactions it deems to involve securities, although it did not definitively address the new company’s compliance during Celsius’ bankruptcy case.
Celsius, mindful of regulatory considerations, now plans to retain certain assets initially destined for the new company, opting to liquidate them as part of the bankruptcy wind-down.
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