Bankrupt Crypto Lender Celcius Is Going To Let Eligible Users Withdraw Their Funds
On the 1st of February, Celcius, a bankrupt crypto lender, announced that some eligible users can hope to withdraw their funds soon. However, in this announcement, Celcius didn’t give any specific date or who are the eligible users. But the 31st of January 2023’s court filing indicates that on or around the 15th of February, the batch of users will be notified of their eligibility. According to the filing, these eligible users by Celcius can also start the process to withdraw their funds at the same period.
According to the filing, this process of withdrawing funds will include providing information as per KYC and AML regulations and updating the addresses of users. The most notable thing from the filing is that the eligible users will only be able to withdraw around 94% of their trapped crypto. But in filing, there is no information regarding the eligible users for withdrawing their funds. According to the 1st of February report from Decrypt, an eligible user will be chosen on several key conditions, such as on which account the user held funds and for how long.
In December 2022, a judge of the bankruptcy court ordered the bankrupt crypto lender to return around $44 million in unnamed cryptocurrencies. According to the Decrypt report, the users who held their funds in the custody program or withhold accounts of Celcius could get 94% of their money back. But there are some conditions, such as if those funds were only ever in the custody program and moved to the custody program from borrow or interest-earning accounts in the 90 days before the petition. Moreover, if the value of funds was less than $7,575.
According to the Decrypt report, the users who sent unsupported crypto to Celsius while in the debtor’s possession are also could be eligible users. If users fulfill all these requirements, then they will be considered eligible for withdrawing 94% of their funds.