- Authorities have authorized Celsius to return to certain eligible users 94% of their assets that were held on the platform since June 2022.
- The Court will need to make a decision as to whether or not eligible users are entitled to the distribution of the remaining 6% of their assets and when such distribution would take place.
- Eligibility depends on certain criteria, such as the user having made transfers of less than US$7,575. and who have enough assets on the platform to cover withdrawal fees.
Celsius has published a document with the names of those users of your platform who will be able to withdraw the “most” of the assets that they had blocked. This means that only some users will be eligible depending on certain criteria.
The news comes just days after a New York court-appointed examiner filed a document about the operations of Celsius Network before it filed for bankruptcy. In fact, as reported in Bitcoin Mexico, the examiner revealed that the company’s problems began at least since 2020.
“Celsius’ problems didn’t start in 2022. Rather, the serious problems date back to at least 2020, after Celsius began using customer assets to fund operating expenses and rewards.“said Shoba Pillay, Designated Examiner.
Now they will be able to recover their assets only some of users who saw them frozen since June 2022. Who are they?
Celsius will be able to deliver 94% of the assets to each user
The recently released court document lists the full names of all users who are eligible for this process, as well as the type and amount of cryptocurrency indebted. It is for this reason that it is a report of approximately 1,400 pages.
In addition, the document granted the company permission to distribute 94% of the assets of each user.
“Whether and when Eligible Users are entitled to a distribution of the remaining 6% will be determined at a later date by the Court.“, says the presentation.
That is to say, the Court will have to make a decision as to whether or not eligible users are entitled to the distribution of the remaining 6% of their assets and when such distribution would take place.
Who are the eligible?
Eligibility depends on certain criteria, being one of them that the user has made transfers of less than $7,575 US dollars. But, in addition, users can only make withdrawals if they have enough assets on the platform to cover withdrawal fees.
“Certain Eligible Users, who could otherwise withdraw Distributable Custodial Assets pursuant to the Withdrawal Order, may have insufficient funds to effect a withdrawal after taking into account the Withdrawal Fees,” points out the presentation.
The initial withdrawal fees associated with each asset, as per the presentation, are (in US dollars):
- Bitcoin (BTC): $2.25
- Ethereum (ETH): $2.40
- ERC-20 tokens: $5.20
- Altcoins: $1.20
Eligible users will receive emails and notifications from the Celsius app around February 15 informing them of their eligibility. The list can be found on page 9 of the document.
And, to withdraw, they must update their information related to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
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