Bankrupt cryptocurrency lending company Celsius reached a withdrawal process for users who had their cryptocurrency in its possession when it halted withdrawals in June 2022.
Celsius released an official update on upcoming withdrawals on January 31, providing a list of users eligible to withdraw approximately 94% of eligible custodian assets.
The company placed the process in a 1,411-page court filing with the United States Bankruptcy Court for the Southern District of New York, listing the full names of all eligible users along with the type and amount of crypto assets owed.
Celsius stressed that eligible users will be required to update their Celsius account with some required information before any withdrawals can be processed. Celsius said the requested information includes customer data related to anti-money laundering and know-your-customer policies, as well as details about the withdrawal destination address, adding:
“Unless and until an Eligible User updates their Account with the required account updates, such Eligible User will not be able to withdraw their Distributable Assets from the Debtors Platform.”
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The filing also indicates that it is not yet known if eligible users will be able to withdraw the remaining 6% of the assets as the court will decide on that question at a later date.
Eligible users will also receive specific details regarding gas fees and transactions associated with upcoming withdrawals. “Eligible users who do not have sufficient assets in their account to meet these fees will not be allowed to withdraw their assets,” Celsius wrote.
Related: Judge rejects motions from Celsius users seeking asset recovery
The news comes amid court-appointed Celsius examiner filing a court dossier on certain aspects of the lender’s operations, including details about its complex dealings with the collapsed FTX exchange. The examiner’s report also revealed that Celsius used Quickbooks accounting software to track its finances, just as FTX and Alameda Research did.
Court-appointed examiner Sobha Pillai also wrote that Celsius and its founder Alex Machinsky had not kept their promises regarding the original Celsius position.
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