Crypto lender firm Celsius has made an announcement that customers can finally withdraw their assets from the platform, eight months after the company filed for bankruptcy.
The recent tweet from Celsius on March 2 states that withdrawals are now available, but only for certain custody accounts.
This positive development came after a court order in January that allowed Celsius to process withdrawals. However, the directive stipulated that only assets in a Celsius custody account can be withdrawn.
These include “Pure Custody” assets that were never in an Earn or Borrow account and “Transferred Custody” assets that were moved from an Earn or Borrow account to a custody account 90 days before Celsius filed for bankruptcy.
Unfortunately, custody accounts that had received assets worth over $7,575 from the Earn or Borrow Program are not eligible for withdrawals. According to the court order, only 94% of distributable assets can be withdrawn from all eligible accounts for now.
In July 2022, Celsius filed for Chapter 11 bankruptcy, owing its customers a total of $4.7 billion due to the rapid drop in the value of several crypto assets. However, the company has been working tirelessly to restructure its operations and pay off its creditors.
On February 15, 2023, Celsius announced its acquisition by digital asset investment firm NovaWulf Digital Management. This agreement aims to sponsor Celsius’s reorganization plan, allowing the company to close the Chapter 11 bankruptcy process and begin full funds distribution as early as June.
Celsius intends to pay off all its earn creditors with liquid cryptocurrency. However, earn creditors with claims less than $5,000 will be considered a “convenience class” and are eligible for only 70% of their claim, paid out in BTC, ETH, and USDC.