Bankrupt Crypto Lender Celsius Reopens Withdrawals for Certain Custody Accounts
The firm paused withdrawals last June, citing extreme market conditions.
Bankrupt crypto lender Celsius Network is allowing withdrawals of assets in certain custody accounts, according to a tweet on Tuesday.
Eligible users will be able to withdraw all the funds in their accounts up to a certain limit, the company said in an earlier blog post.
Celsius secured approval to process certain withdrawals according to several U.S. court orders in January. In February, Celsius published a list of names of users who could withdraw assets locked on the platform, with the company saying at the time it had permission from the U.S. Bankruptcy Court in the Southern District of New York to distribute 94% of each user's assets. Eligibility for withdrawals was dependent on certain criteria such as that transfers had to be less than $7,575 when they were originally made, the February document said, and users had to have enough assets on the platform to cover any withdrawal fees.
Celsius paused withdrawals last June, citing extreme market conditions, and it filed for Chapter 11 bankruptcy protection a month later as it struggled with liquidity issues.
The lender was hurt by the crypto winter in which billions have been wiped out of the crypto market in months, as several prominent companies such as stablecoin issuer Terra collapsed.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.