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Celsius Network, which is famously known for lending digital currencies, reveals that they are set to refund part of the customers’ funds held. This was made known in an insolvency court in New York on the 1st of September 2022.

Celsius Seeks Court Approval to Start the Refund

Recall that the crypto lending company has made headlines over the months concerning its insolvency. Some stakeholders also filed court cases against them.

However, the company plans on commencing withdrawal for its 58,300 users. The amount will be about 22% of the total $48 Millions with them. They made this known in a court hearing wanting approval to restart withdrawal.

Meanwhile, this is coming after the filing for Chapter 11 bankruptcy on July 14, which Alex Mashinsky (Co-founder and CEO of Celsius), believes is the best move to return the organization to its best, after months of struggles.

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However, Ross Kwasteniet and his colleagues, representing the company, added on Thursday that they are not giving up the hope of getting back on their feet yet. Also, pleading with the court to lift the restriction on digital assets in their custody. 

Celsius Owes $4.3 billion

Based on the filing, Celsius is believed to be in debt of about $4.3B. The company however plans on restructuring as they pass through the bankruptcy proceedings.

However, Ross and his partners reveal that the company plans to protect the funds in their possession. The solicitors revealed that the company has around $215 million in its custody. People are left wondering how they plan to raise the differences.

According to the analysis in the filing, it was  revealed that the digital assets that do not belong to the organization were identified by their debtors. The debtors also agree that they legally have no claim to these digital assets.

Celsius Charged Former Manager to Court

Celsius believes Jason Stone representing KeyFi Inc., who was their former investment manager, stole some of their funds. Similarly, Celsius believes Jason assisted some unqualified creditors to access finance from the firm.

In the quest to recover the stolen millions, Celsius charged Jason Stone and KeyFi Inc. to court. Likewise, they seek the recovery of the company’s assets in his custody, after he left the company.

Finally, the bankruptcy filings show Celsius is now worth $3 billion following the $690 million gathered in 2022 through multiple funding.

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Alicia Maher

By Alicia Maher

Alicia Maher is an accomplished news writer with a passion for storytelling. With years of experience in the field, she is skilled at delivering accurate, engaging, and insightful news coverage to her audience.