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Bankrupt Crypto Lender Celsius Reopens Withdrawals for Certain Custody Clients

The now-inoperative crypto lending firm Celsius has announced the opening of withdrawals for select “Eligible Custody Users,” as declared in a recent statement on Wednesday. These custody account holders now have the opportunity to withdraw approximately 72% of their cryptocurrency assets, with the deadline set for February 28, 2024.

Celsius Announces Limited Withdrawal Window for Eligible Users

On Wednesday, Celsius communicated that certain customers have been granted withdrawal rights following court approval of the company’s restructuring plan. The decision comes after Celsius sought Chapter 11 bankruptcy protection on July 13, 2022, a month subsequent to the suspension of withdrawals. Now, “Eligible Custody Users” are permitted to access their funds.

The company’s official X page stated, “Beginning today, additional withdrawals for Eligible Custody Users are now available. Please note that the only assets currently available for withdrawal are certain Custody Assets; all other cryptocurrency remains unavailable for withdrawal at this time.”

This segment of custody clients originates from two separate groups of claimants, who have until February 28, 2024, to execute their withdrawals. Handling of other clients, including those who opposed Celsius’ restructuring plans, will occur over the forthcoming six months. Participants in the current withdrawal process will receive slightly more than 72% of their crypto assets, according to the docket provided by Stretto, a bankruptcy case filings management company.

As per the latest update on November 24, 2023, on Claims Market, bids for Celsius claims are at $0.38 on the dollar. In comparison, FTX claims in that specific bankruptcy case are fetching $0.57 on the dollar through Claims Market. Furthermore, Celsius has advised its eligible clients on social media to expedite the withdrawal of their cryptocurrency assets before the window of opportunity lapses.

The company emphasized on Wednesday, “We strongly encourage you to withdraw these assets from the Celsius app and take personal records of information you may find useful immediately, as the Celsius app will only be available for a limited time.”

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