Failed cryptocurrency lender Celsius introduced a withdrawal procedure for users who had their crypto in custody when it stopped withdrawals in June 2022.
On January 31, Celsius released an official update on upcoming withdrawals, providing the list of users who will be entitled to withdraw approximately 94% of the assets in custody.
The firm outlined the process in a 1,411-page document filed with the United States Bankruptcy Court for the Southern District of New York, listing the full names of all eligible users along with the type and amount of crypto assets filed.
Celsius stressed that eligible users will be asked to update their account with certain information before any withdrawals are processed. The requested information includes customer data relating to anti-money laundering and Know Your Customer policies, as well as withdrawal destination address details, Celsius said, adding:
“Until an eligible user updates their account with the required updates, such eligible user will not be able to withdraw their custody assets from the platform.”
The document also specifies that it is not yet clear whether eligible users will be able to withdraw the remaining 6% of assets, as the court will decide on it at a later time.
Eligible users will also receive specific details regarding the gas and transaction fees associated with upcoming withdrawal procedures. “Eligible users who do not have sufficient assets in their accounts to meet these fees will not be able to withdraw them”Celsius wrote.
The news comes after the court-appointed examiner for Celsius filed a report on some aspects of the lender’s operations, including details on its complex dealings with the collapsed exchange FTX. The examiner’s report also revealed that Celsius used Quickbooks accounting software to track its finances, just as FTX and Alameda Research did.
Court-appointed examiner Shoba Pillay also wrote that Celsius and its founder Alex Mashinsky failed to deliver on their promises regarding the native token Celsius (CEL) and other commercial assets.
