After 8 months of filing for bankruptcy, cryptocurrency lending platform Celsius Network resumes withdrawals to eligible Custody customers.
Celsius Network has notified a group of eligible customers about the possibility of withdrawing the majority of their funds from the cryptocurrency lending platform.
The withdrawals come after the order issued by the US Bankruptcy Court, in which authorizes the reopening of certain clients' accounts for the retirement of distributable assets.
At the moment, users eligible for withdrawals belong to the Celsius Custody service, as reported by the crypto lending platform itself through its Twitter account. Celsius also noted that Eligible users must update their data and information before accessing withdrawals. This process can be done through the Celsius app, the platform said.
Meanwhile, Celsius Network shared a FAQ document to detail various aspects regarding the withdrawal of funds from Custody accounts.
In said Valid identity document, published via Medium, the crypto lending platform highlights that the assets to be returned to customers are classified into two categories: pure assets in Custody and assets transferred from Earn or other accounts to Custody.
The first of these categories does not impose limits on the amount of assets to enable the withdrawal of funds, while the second only enables withdrawals in those accounts whose amount is less than $7.575 dollars, according to what is established in section 547 of the Bankruptcy Code. In addition to this, the platform indicates that for security reasons, LUNC and USTC crypto assets from the Terra Classic ecosystem are not available for withdrawal and, pursuant to the court order, eligible customers are permitted to withdraw up to 94% of the funds available in their Custody accounts.
Celsius Network customers who meet the established conditions have thus been able to access and withdraw most of their blocked assets. The rest of the customers who do not have access to their funds for now must wait for authorization and future decisions from the Bankruptcy Court, Celsius said.
The cryptocurrency lending platform halted withdrawals in June and, a month later, filed for bankruptcyIts managers acknowledged their liquidity problems and filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Law, in order to gain time to restructure the company's business.
In September, CEO Alex Mashinsky laid out a plan to get Celsius Network back on track, with the idea of focusing on crypto asset storage and custody rather than crypto lending.
Continue reading: Analysis: What happened at Celsius Network?
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