Bankrupt Celsius Grants Withdrawals for Select Crypto Holders

In the face of legal troubles and unstable finances, the bankrupt cryptocurrency lending platform Celsius has begun to allow fund withdrawal for a limited number of users.

This is an important step forward for the company and its clients.

Participants in its custody program who fall under "Class 6A General Custody Claims" and "Class 6B Withdrawable Custody Claims" are now eligible for fund withdrawals, with a deadline for withdrawals set for February 28, 2024, according to a filing in the United States Bankruptcy Court for the Southern District of New York.

72.5% of the cryptocurrency holdings of qualified participants may be withdrawn, minus transaction costs. Customers who disagreed with the reorganization plan were excluded.

Rather, their assets will be managed separately by a litigation administrator for a period of six months.

After declaring bankruptcy in July 2022, the platform has had to overcome a number of legal challenges. A settlement plan that promised deposit account holders 72.5% of their money in two installments over the course of 2023 was approved in March.

Sources:

https://cointelegraph.com/news/celsius-grants-access-withdrawals-eligible-crypto-holders

https://cases.stretto.com/public/x191/11749/PLEADINGS/1174911292380000000040.pdf