Celsius Files To Reopen Withdrawal For Eligible Users

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In a Twitter post by Celsius Network, “Last night, Celsius filed a motion requesting the authority to reopen withdrawals for specific Custody and Withhold accounts. These requests are focused on two categories of assets for users that do not have outstanding loans.

Crypto lending platform Celsius has been financially bankrupt for about two months now. As such, they have been going through bankruptcy proceedings. 

Regardless of this plight, they currently filed the motion to return funds to some of its eligible users. They plan on reopening withdrawals for Custody and Withhold account holders because they believe these users are the owners of their cryptocurrencies due to the structure of their accounts. Therefore, they should be able to retrieve the money they deposited on the platform.

According to the filing, they have about 58,300 users who deposited over $210 million collectively with its Custody and Withhold and about 15,680 customers holding Pure Custody Assets worth about $44 million.

In a Twitter post, the now defunct platform stated;

“Last night, Celsius filed a motion requesting the authority to reopen withdrawals for specific Custody and Withhold accounts. These requests are focused on two categories of assets for users that do not have outstanding loans. The first is those currently owed in Custody and Withhold accounts that were never in the Earn or Borrow Programs. The second, certain Custody and Withhold accounts where transfers from the Earn or Borrow Programs were, in the aggregate, less than the US $7,575 (a specific legal threshold).”

The decision was made because the funds belonged to the customers, not Celsius, who only acted as the storage provider. They further explained that the Earn and Borrow users will not be able to withdraw their assets for now.

Celsius further announced that today’s motion would be considered at a later hearing, and they will also eventually address all its customers. Their next hearing is scheduled for September 14, and they promised to keep their customers updated with all that is happening.

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Written by
Chiagoziem Bede Ikwueze

In a Twitter post by Celsius Network, “Last night, Celsius filed a motion requesting the authority to reopen withdrawals for specific Custody and Withhold accounts. These requests are focused on two categories of assets for users that do not have outstanding loans.

Crypto lending platform Celsius has been financially bankrupt for about two months now. As such, they have been going through bankruptcy proceedings. 

Regardless of this plight, they currently filed the motion to return funds to some of its eligible users. They plan on reopening withdrawals for Custody and Withhold account holders because they believe these users are the owners of their cryptocurrencies due to the structure of their accounts. Therefore, they should be able to retrieve the money they deposited on the platform.

According to the filing, they have about 58,300 users who deposited over $210 million collectively with its Custody and Withhold and about 15,680 customers holding Pure Custody Assets worth about $44 million.

In a Twitter post, the now defunct platform stated;

“Last night, Celsius filed a motion requesting the authority to reopen withdrawals for specific Custody and Withhold accounts. These requests are focused on two categories of assets for users that do not have outstanding loans. The first is those currently owed in Custody and Withhold accounts that were never in the Earn or Borrow Programs. The second, certain Custody and Withhold accounts where transfers from the Earn or Borrow Programs were, in the aggregate, less than the US $7,575 (a specific legal threshold).”

The decision was made because the funds belonged to the customers, not Celsius, who only acted as the storage provider. They further explained that the Earn and Borrow users will not be able to withdraw their assets for now.

Celsius further announced that today’s motion would be considered at a later hearing, and they will also eventually address all its customers. Their next hearing is scheduled for September 14, and they promised to keep their customers updated with all that is happening.

We're glad you read to this point!

Every week, we publish an email newsletter highlighting all the juicy stories we covered in the crypto space, bringing all the major happenings to your doorstep.

So, if you want to have top stories delivered to your email inbox every week, subscribe to our newsletter!

Written by
Chiagoziem Bede Ikwueze