Celsius Upcoming Withdrawals: Are Your Assets at Risk?

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Celsius, a bankrupt cryptocurrency lending firm, has issued an official statement regarding the pending withdrawals for eligible users. In a 1,411-page court filing with the US Bankruptcy Court in the Southern District of New York, Celsius has provided a list of users who will be able to retrieve approximately 94% of their eligible custody assets. The remaining 6% of assets will be determined at a later date.

You can read all 689 pages of the examiner’s report here — https://t.co/BtavcOsauQ

— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) January 31, 2023

Before processing any withdrawals, eligible users are required to update their Celsius accounts with the necessary information, such as Anti-Money Laundering (AML) and Know Your Customer (KYC) data, as well as the withdrawal destination address. Celsius stresses that failure to provide the necessary information will result in the inability to withdraw assets.

Gas And Transaction Fees For Withdrawals

In addition to the required information, eligible users will also be informed of the gas and transaction fees associated with the withdrawal process. Celsius has stated that those who do not have sufficient funds in their accounts to cover these fees will not be able to withdraw their assets.

The release of this information follows a court filing submitted by the court-appointed examiner, Shoba Pillay, which sheds light on various aspects of Celsius’ operations, including its relationship with the now-defunct FTX exchange. The report revealed that Celsius utilized Quickbooks software for financial management, similar to FTX and Alameda Research.

The examiner’s report also alleges that Celsius and its founder, Alex Mashinsky, failed to deliver on their promises regarding the Celsius (CEL) token and other business ventures. It reveals questionable actions taken by the cryptocurrency lending firm, causing financial hardship for many of its customers. The report provides detailed evidence of improper and self-serving behavior that has caused harm to a significant number of people.

The Official Committee of Unsecured Creditors (UCC) of Celsius is taking a firm stance on the matter and is determined to hold those responsible accountable for their actions.