Crypto lending platform Celsius has reported that certain users will be able to take out 100% of their original funds more than 300 days after the platform froze withdrawals.
In a May 4 announcement, Celsius said eligible users would be able to withdraw the remaining 6% of distributable custody assets from the platform following court approval. Until January, the same users, largely those who only ever held funds in custody accounts, had been limited to withdrawing up to 94% of their funds.
Earlier this year, the Court approved the distribution of the remaining 6% of Eligible Users’ Distributable Custody Assets (pure custody and transferred custody below $7,575 at the time of transfer) for a total of 100% of Eligible Users’ Distributable Custody Assets.
— Celsius (@CelsiusNetwork) May 4, 2023
The announcement marked progress in getting some Celsius customers reimbursed for missing funds for the first time since the company froze withdrawals in June 2022 before filin for bankruptcy in July. Many Celsius users reported a backlog of withdrawal attempts despite the funds supposedly being available, with some claiming requests had taken a matter of days to process.
I have funds in Custody but can’t withdraw the 36% yet… anyone else having this issue?
— ©elsius x Voyager (@Celsius_Voyager) May 5, 2023
According to court filings, Celsius was looking to combine its United Kingdom and United States entities, seemingly to have the two treated the same in bankruptcy proceedings. Celsius founder and former CEO Alex Mashinsky is also facing a lawsuit filed by the New York Attorney General’s office in January. Mashinsky filed a motion to dismiss on May 2, claiming the AG’s case “parrots misinformation.”