Eligible borrowers cannot withdraw their funds from Celsius until they update their accounts with AML and KYC information.
When the mortgage lender Celsius stopped accepting payments in June 2022, it brought the withdrawal process to users who hold crypto in custody.
On January 10, Celsius released an update on the upcoming withdrawal on the 31st, listing approximately 94% of copyrighted products as users have received cancellations. .
The 1,411-page court document in the United States Bankruptcy Court for the Southern District of New York lists the full names of all eligible users as well as the types and amounts of crypto assets balance.
Celsius added that eligible users will be asked to update their Celsius account with some required information before cancellation can be processed. The requested information includes customer information related to financial protection and know-your-customer policies, as well as details of the location of the address, Celsius added:
“The Eligible User shall not withdraw his/her Assets from the Accounts Payable until the Eligible User has updated his/her account with the required updates. did.”
The petition says that it is not yet known whether the eligible customers can recover 6% of the assets and the court will decide on this question at a later date.
Users of the service will also receive specific details regarding fuel costs and exchange rates associated with future withdrawal processes. “Eligible users who do not have sufficient funds in their account to satisfy these fees will not be allowed to withdraw their assets,” Celsius wrote.
RESULTS: The judge rejected the users’ request to recover the assets
The news comes as Celsius’ auditor filed a lawsuit against the lender regarding certain aspects of the lender’s operations, including its involvement with the FTX exchange. Analysts reviewing the report revealed that Celsius used financial software called Quickbooks to track its finances, as did FTX and Alameda Research.
Court analyst Shobha Pillai also wrote that Celsius and its founder Alex Mashinsky did not deliver on their promises around its own Celsius (CEL) token and other transactions.