Crypto lending platform Celsius has reported that some users will be able to withdraw 100% of their original funds more than 300 days after the platform freezes withdrawals.
In a May 4 announcement, Celsius said eligible users could withdraw the remaining 6% of distributable custody assets from the platform after court approval. Until January, the same users, largely those who had only ever held funds in deposit accounts, had been limited to withdrawing up to 94% of their funds.
Earlier this year, the Court approved the distribution of the remaining 6% of eligible users’ distributable custodial assets (pure custody and transferred custody less than $7,575 at time of transfer) for a total of 100% of distributable custodial assets eligible users.
— Celsius (@CelsiusNetwork) May 4, 2023
The announcement marked progress in reimbursing some Celsius customers for missing funds for the first time since the company froze withdrawals in June 2022 before filing for bankruptcy in July. Many Celsius users have reported a backlog of withdrawal attempts despite claims of funds being available, with some requests claiming to have taken a few days to process.
I have funds on deposit but can’t withdraw the 36% yet…anyone else having this problem?
— ©elsius x Voyager (@Celsius_Voyager) May 5, 2023
Related: Celsius publishes list of users eligible to withdraw majority of assets
According to court documents, Celsius was seeking to combine its UK and US entities, ostensibly so that the two would be treated the same in bankruptcy proceedings. Celsius founder and former CEO Alex Mashinsky is also facing a lawsuit filed by the New York Attorney General’s Office in January. Mashinsky filed a motion to dismiss on May 2, alleging the AG’s case was “parrot misinformation.”
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