Eight months after filing for Chapter 11 bankruptcy in the US, bankrupt crypto lender Celsius Network has finally allowed custody account holders to start withdrawing some of their assets. This comes a month after Celsius published a list of customers eligible for withdrawals.
It all started at the beginning of December 2022 after Celsius was ordered by a US Bankruptcy Judge to return cryptocurrencies worth about $44 million to its custody program customers. This was followed by another ruling that allowed Celsius to auction some of its assets including the Celsius retail platform and mining business.
Towards the end of January 2023, Celsius received another approval from the US bankruptcy court allowing it to return funds transferred to the platform after the company filed for Chapter 11 bankruptcy in July 2022. At the same time, the crypto lender also got approval to go ahead with its planned Flare token airdrop to eligible holders of Ripple (XRP) on the platform.
Withdrawals started on March 2
Celsius on March 2 shared a stating that it was reopening withdrawals for “Distributable Assets in certain Custody Accounts.”
The crypto lender then went ahead to add that “Eligible Users are being notified of the steps needed to facilitate their withdrawals”
Eligible Users are being notified of the steps needed to facilitate their withdrawals. Users can find additional information about the withdrawal process on our FAQ blog: https://t.co/OvVJgV5GrP
— Celsius (@CelsiusNetwork) March 2, 2023
Since the withdrawals started, overjoyed customers have been sharing their withdrawal stories on Twitter and Reddit seeing that the withdrawals resumed 263 days after the company filed for bankruptcy.
As previously stated by Celsius, eligible customers are only allowed to withdraw 94% of their funds with the fate of the remaining 6% depending on the outcome of the ongoing court hearings.
Celsius customers begin withdrawing funds eight months after bankruptcy filing appeared first on CoinJournal.
