263 Days Later: Some Celsius Customers Can Withdraw Their Funds

The bankrupt cryptocurrency lending firm Celsius announced the reopening of Distributable Assets in certain Custody Accounts.

Following the update, some customers took to social media to reveal being able to withdraw funds for the first time since the lender halted its services last June.

The development comes a month after the United States Bankruptcy Court for the Southern District of New York authorized Celsius to reopen withdrawals for certain customers with assets held in Custody Accounts.

Criteria For Withdrawal

Customers that meet certain eligibility requirements laid down in the court filing are only eligible for the process. For instance, “Pure” Custody Account Assets that were never in the Earn Program or Borrow Program and were transferred directly into the Custody Program will be able to withdraw their funds from the lender. Additionally, there is no cap on the number of digital assets that are eligible for withdrawal in this category.

On the other hand, Celsius is authorized to enable withdrawals for users with aggregate transferred custody assets below $7,575. This amount is defined by section 547 of the Bankruptcy Code.

“Transferred” Custody Assets are essentially those assets that were transferred from the Earn or Borrow Program into the Custody Program in the 90 days leading up to the bankruptcy filing. As such, customers with aggregate transferred assets greater than the above-mentioned amount may not withdraw at this time.

According to an earlier update, Celsius employees and affiliates – both current and former – including “insiders,” have not been authorized to withdraw assets.

Delays and Backlogs

Customers had reported receiving an email a few weeks ago detailing those who were eligible to withdraw their funds.

Whitelisted ones are required to update their KYC and AML data to start the withdrawal process. The ones who are not verified will not be able to raise a request. Furthermore, transaction fees are being imposed on every withdrawal.

While many heaved a sigh of relief, some users have been experiencing delays in processing their requests as a result of a backlog of pending withdrawals. With withdrawal requests being piled up, Celsius has been converting these into support tickets.

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