By James Davis
For the first time since filing for bankruptcy, Celsius allows users with funds in their custody program account to withdraw their funds. As of March 2, Celsius was processing withdrawals from Custody accounts. Most of these accounts are accounts based in the US.
Through their communication via email a few weeks earlier, details from Celcius required users to verify their identity, complete the KYC verification, and submit a withdrawal request. Eligible users can also withdraw certain assets with transaction fees for every withdrawal applied.
Some customers have received their assets almost immediately, while others complain of delays. However, Celcius says there’s not enough personnel to handle transactions but assured customers of receiving their funds hence a backlog of transactions.
Eligible Customers for Withdrawal
The court authorized Celcius to reopen withdrawals. Certain customer accounts are eligible to withdraw. These include Custody accounts that have never benefited from yielding and had deposited funds directly into the custody program.
It also involves ‘Transferred’ Custody Assets from yielding moved 90 days before the bankruptcy filing in July 2022 to the custody program. Users with an average of $7,575 transferred assets or under are the only ones able to conduct the withdrawals.
However, some cannot withdraw, including current and former employees and their affiliates, any account with a loan from December 20, 2022, and accounts that do not have enough funds to cover transaction fees even though they are eligible.
Eligible users will get 94% of their assets minus transaction fees. An additional 6% will be released once the court approves the pending settlement, with another transaction fee applied to the original assets once the court approves. Users can withdraw if their accounts have enough balance to cover transaction fees.
Other Customers
Moreover, this does not affect other issues against Celcius in court. The Court only allowed withdrawal for certain assets. Custody accounts are only available in the USA; hence, other customers worldwide can only withdraw their funds at further notice.
It disappoints other customers, but they can only wait for a determination on Earn customer accounts. Celsius said there is no deadline for withdrawals, and due to bulk transactions, more than 24 hrs delay is expected.