Bankrupt Firm Makes Clear Those Who are Eligible For Refund

Celsius Releases a list of users eligible for withdrawals


Celsius makes a list

Celsius, the now-bankrupt cryptocurrency lending firm, has released a list of users eligible to withdraw approximately 94% of their qualified custody assets. The list of eligible users and the details of the assets were provided in a 1,411-page court filing with the United States Bankruptcy Court for the Southern District of New York. The court filing indicates that these eligible users will be notified of their eligibility on or around February 15, 2023, and will begin the process of updating their accounts with Anti-Money Laundering (AML) and Know Your Customer (KYC) data before any withdrawals are processed.

The firm stressed that users who are eligible to withdraw their assets must update their accounts with the required information. This includes details of the customer related to AML and KYC policies, as well as the destination address of the withdrawal. Unless the eligible user updates their account with this information, they will be unable to withdraw their assets from the platform.

However, it is not yet known whether eligible users will be able to withdraw the remaining 6% of the assets, as the court will make a decision on this matter at a later date. Eligible users will also receive information related to gas and transaction fees associated with the withdrawal procedures. Eligible users who do not have enough assets in their accounts to cover these fees will not be permitted to withdraw their assets.

FTX – style accounting found 

This announcement comes after the court-appointed examiner submitted a report on certain aspects of Celsius’s operations. The report revealed that Celsius used Quickbooks accounting software, just like FTX and Alameda Research, to keep track of its finances. The report also noted that Celsius and its founder Alex Mashinsky did not deliver on their promises surrounding the native Celsius token and other business activities.

To be considered an eligible user, a user must have held their funds in Celsius’s “custody program” or in “withhold accounts”. They must have held the funds only in the custody program, or moved to the custody program from interest-earning or borrow accounts within the 90 days prior to the petition and the value of their funds must be less than $7,575. Users who sent unsupported crypto to Celsius and which are in the firm’s possession are also considered eligible.

A few caveats

However, it is important to note that eligible users must account for any transaction and gas fees associated with their withdrawals. If the fees are higher than the holdings in their account, they will not be able to withdraw their assets.

Concluding, Celsius’s announcement of the eligible users to withdraw their assets is a positive step towards resolving the issue of trapped crypto. The eligible users will have to update their accounts with the required information and pay attention to the transaction and gas fees associated with their withdrawals. The court’s decision on whether eligible users will be able to withdraw the remaining 6% of their assets is still pending and will be decided at a later date.

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