Bankrupt cryptocurrency lending firm Celsius had come up with a withdrawal process for users who had their crypto in its custody when it stopped withdrawals in June 2022.
Celsius released an official update on upcoming withdrawals on Jan. 31, providing the list of users that will be eligible to withdraw approximately 94% of eligible custody assets.
The firm laid out the process in a 1,411-page court filing with the United States Bankruptcy Court for the Southern District of New York, listing the full names of all the eligible users alongside the type and amount of debted crypto assets.
Celsius stressed that eligible users will be asked to update their Celsius account with certain required information prior to any withdrawals being processed. The requested information includes customer data related to Anti-Money Laundering and Know Your Customer policies as well as details about the destination address of the withdrawal, Celsius said, adding:
“Unless and until an eligible user updates his or her account with the required account updates, such eligible user will be unable to withdraw his or her distributable custody assets from the debtors’ platform.”
The filing also notes that it’s not yet known whether eligible users will be able to withdraw the remaining 6% of the assets as the court will make a decision regarding this question at a later date.
Eligible users will also receive specific details related to gas and transaction fees associated with the upcoming withdrawal procedures. “Eligible users who do not have sufficient assets in their accounts to satisfy these fees will not be permitted to withdraw their assets,” Celsius wrote.
The news comes amid Celsius’s court-appointed examiner submitting a court filing on certain aspects of operations at the lender, including details about its complex dealings with the collapsed FTX exchange. The examiner report also revealed that Celsius used the accounting software Quickbooks to keep track of its finances, just like FTX and Alameda Research did.
Court-appointed examiner Shoba Pillay also wrote that Celsius and its founder Alex Mashinsky did not deliver on its promises surrounding its native Celsius (CEL) token and other business activities.