Eligible lenders cannot withdraw their funds from Celsius unless they update their accounts with AML and KYC data.
Bankrupt cryptocurrency lender Celsius had come up with a withdrawal process for users whose cryptos were in its custody when withdrawals stopped in June 2022
Celsius released an official update on the upcoming approval on January 31st, providing a list of users eligible to remove approximately 94% of eligible detention properties
The process was laid out in a 1,411-page court filing in the United States Bankruptcy Court for the Southern District of New York, listing the full names of all eligible users as well as the types and amounts of outstanding crypto assets There was
Celsius emphasized that eligible users will be asked to update their Celsius accounts with certain required information before any withdrawals are processed. Celsius said the requested information included customer data relating to anti-money laundering and know your customer policies, as well as details about destination addresses for withdrawals
“Unless and until the Eligible User updates his/her account with the required account updates, such Eligible User may not withdraw his/her Distributed Custody Assets from the Lender’s Platform.”
The AI crypto platform delivered an average of 17 winner alerts per month in 2022
The filing added that it is not yet known whether eligible users can reclaim the remaining 6% of the assets as the court will rule on the question at a later date.
Eligible users will also receive specific details relating to gas transaction fees associated with upcoming clearance procedures. “Eligible users who do not have sufficient assets in the account to cover these charges cannot withdraw their assets,” Celsius wrote.
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Court-appointed examiners of Celsius submitted court filings to the lender on certain aspects of operations, including details of its complex dealings with the collapsed FTX exchange The examiner’s report also called for Celsius to track its finances Leigh uses accounting software QuickBooks, as do FTX and Alameda Research.
Shoba Pillai, the court-appointed examiner, also wrote that Celsius and its founder, Alex Mashinsky, failed to deliver on their promises around their original Celsius
tokens and other trading activities.