Eligible Celsius Users Can now Withdraw Digital Assets: Details
- Celsius published a 1,400 page document in bankruptcy court allowing eligible customers to withdraw 94% of their digital assets.
- All the eligible users will receive an email confirming their eligibility on or around February 15.
- “Whether Eligible Users are able to withdraw the remaining 6% will be decided by the Court at a later date,” stated Celsius.
- The crypto lender has asked eligible users to update their accounts with certain information, citing security reasons for the same.
Millions of users were affected by the collapse of crypto lending giant Celsius Network, which will go down in history as one of the worst financial disasters in the crypto space. The platform filed for bankruptcy in early 2022 and even froze withdrawals of assets. Interestingly, the crypto firm announced that people can now withdraw money from their accounts, but there are certain points that they have to stand by.
The company published a 1,400 page document in bankruptcy court on Wednesday that contained the details of the new policy of withdrawal that the crypto company will follow. As per the document, Celsius Network is “in the process of preparing a list and distribution schedule related to the Ineligible Withhold Assets.” Furthermore, eligible users are allowed to withdraw up to 94% of their holdings, which is positive news for those who have been waiting for months for the same.
All the eligible users will receive an email confirming their eligibility on or around February 15, and the document expects that there will be a huge number of withdrawal requests at that time. In a Twitter post, Celsius stated that “eligible users will also receive specific information related to gas and transaction fees associated with withdrawal activities.”
“Eligible Custody users will be able to withdraw approximately 94% of their eligible Custody assets at this time. Whether Eligible Users are able to withdraw the remaining 6% will be decided by the Court at a later date,” stated Celsius while adding that users who “do not have sufficient assets in their accounts to satisfy these fees will not be permitted to withdraw their assets.”
Celsius has also asked the eligible users to update their accounts with certain information, citing security reasons for the same. It is also crucial to note that the withdrawals are based on the following three factors:
- Each eligible user must update their Celsius account with “specific customer information related to Anti-Money Laundering (AML) and Know Your Customer (KYC) information.”
- The amount in fiat of the assets on the date of transfer should be less than $7,575.
- Lastly, the value of assets withdrawn will be inclusive of the gas fees.
“The Debtors [Celsius] expect to receive a high number of withdrawals and are committed to ensuring accurate and safe withdrawals off of their platform, any such withdrawals may not be processed immediately upon request,” read the document.
As earlier pointed out by Bitnation, Shoba Pillay, the independent examiner for the Celsius bankruptcy case, claims in a report that the company “conducted its business in a starkly different manner than how it marketed itself to its customers.” Pillay believes that the crypto lender was operating more like a Ponzi and promising customers that they would be able to “unbank” themselves and enjoy “financial freedom” and similar misleading statements.