- The crypto lender also paused swaps and transfers last year and filed for bankruptcy the following month.
- Only users in the US are eligible to redeem their funds, according to a court order.
Bankrupt crypto lending platform Celsius has resumed withdrawals for some users after pausing its services in June last year and filing for Chapter 11 bankruptcy protection the following month.
From March 3, the lender announced, withdrawals would reopen for Distributable Assets in certain Custody Accounts. The latest developments come after the United States Bankruptcy Court of the Southern District of New York directed the Celsius to restart withdrawals for a section of customers under specific conditions.
Those eligible fall under two categories: ‘Pure’ Custody Accounts and ‘Transferred’ custody accounts. The first category is the accounts that were never in the Earn Program or Borrow program, and according to the announcement, users holding such have no withdrawal limit.
The second category comprises accounts containing funds transferred from Earn or Borrow program into the custody program within the 90 days before Celsius sought the bankruptcy protection. Such users can only access less than $7,575, per section 547 of the Bankruptcy Code.
Users To Access 94% Of Their Account Balances
Celsius is authorized to distribute only up to 94% of each eligible user’s distributable custody assets, less the withdrawal charges. Only the US customers qualify under the new court order – since custody accounts were only based in the country. International customers would have to wait longer to access their funds.
Customers not eligible to withdraw their holdings include current and former Celsius employees, those with active loans, and accounts with less than the withdrawal transaction fees. LUNC and USTC tokens are also not available for withdrawals because of the technical aspects, says the announcement.
Celsius paused withdrawals in June last year over what it termed as ‘extreme market conditions’. What followed was a chapter 11 bankruptcy protection filing in July when the company could not stay afloat.
