After 8 months of declaring bankruptcy, the Celsius Network cryptocurrency lending platform resumes withdrawals to eligible clients of the Custody service.
Celsius Network notified a group of eligible clients about the possibility of withdrawing most of their funds from the cryptocurrency lending platform.
The withdrawals come after the order issued by the United States Bankruptcy Court, in which authorizes the reopening of certain customer accounts for the withdrawal of distributable assets.
At the moment, the users eligible for withdrawals belong to the Celsius Custody service, as reported by the crypto-loan platform itself through its Twitter account. Also, Celsius pointed out that eligible users must update their data and information before accessing withdrawals. This process can be done through the Celsius application, the platform indicated.
On the other hand, Celsius Network shared a Frequently Asked Questions (FAQ) document to detail various aspects regarding the withdrawal of funds from Custody accounts.
in said documentpublished through Medium, the crypto lending platform highlights that the assets to be returned to clients are classified into two categories: pure assets in Custody and assets transferred from Earn or other accounts to Custody.
The first of these categories does not impose limits on the amount of assets to enable the withdrawal of funds, while the second only enables withdrawals in those accounts whose amount is less than $7,575 dollars, in accordance with the provisions of section 547 of the Bankruptcy Code. In addition to this, the platform indicates that for security reasons, LUNC and USTC crypto assets, from the Terra Classic ecosystem, are not available for withdrawal and, that pursuant to court order, eligible clients are allowed to withdraw up to 94% of the funds available in their Custody accounts.
In this way, Celsius Network customers who meet the established conditions have been able to access and withdraw most of their blocked assets. The rest of the clients that for now do not have access to their funds must wait for the authorization and future decisions of the Bankruptcy Court, Celsius said.
The cryptocurrency lending platform halted withdrawals in June and, a month later, filed for bankruptcy. Its managers recognized their liquidity problems and filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Law, in order to gain time to restructure the company’s business.
In September, its CEO Alex Mashinsky presented a plan to get Celsius Network back on track, with the idea of focusing on crypto asset storage and custody instead of crypto lending.
Continue reading: Analysis: What happened to the Celsius Network?
IMPORTANT: The content of this article is made for informational purposes only and, in no case, what is written here should be taken as advice or investment recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We detach ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or any other asset class, you are solely responsible for the consequences that your decisions and actions may have.
