Celsius Customers Can Now Withdraw Digital Assets from Control Accounts Following Court Ruling

By 0xGorki 03/4/23 7:30 AM

Celsius, the cryptocurrency lending company, has announced that customers can now withdraw their digital assets from the platform immediately after the 8-month deadline for filing a lawsuit officially expired on March 2nd.

This announcement follows a court order issued in January, which permitted Celsius to resume withdrawals as usual. However, it only applies to Celsius’ control accounts, which are assets that were not previously held in borrowing or lending accounts. This includes assets that were transferred to internal management accounts within 90 days prior to Celsius filing for bankruptcy.

Today, withdrawals will reopen for Distributable Assets in certain Custody Accounts.

— Celsius (@CelsiusNetwork) March 2, 2023

Other accounts, such as those with a value of over $7,575 from other programs, are not yet eligible for withdrawal under the court order, leaving only 94% of all funds available for distribution.

Is Celsius making a comeback?

In July 2022, Celsius filed for Chapter 11 bankruptcy as the leading cryptocurrency lender with $4.7 billion in customer debt. The company’s collapse was primarily due to the rapid decline in the value of several cryptocurrencies amidst the global financial crisis.

After running a comprehensive marketing process, we were pleased to share with the Court today that we have reached an agreement in principle with a plan sponsor, NovaWulf Digital Management, LP. The transaction includes these key forms of consideration for customers:

— Celsius (@CelsiusNetwork) February 15, 2023

Following the bankruptcy, Celsius worked to restructure its internal operations and repay debts. On February 15th of this year, the company announced that it had been acquired by digital asset investment firm NovaWulf Digital Management. The agreement with NovaWulf aims to provide Celsius with the necessary resources to make a successful comeback in the cryptocurrency lending industry.