Celsius issues latest update regarding customer withdrawals after court ruling

Collapsed cryptocurrency lending platform Celsius Network has issued the latest update on the progress of allowing customer withdrawals as the bankruptcy hearings continue. 

This is after a bankruptcy judge ruled that Celsius should return deposits to specific customers whose funds were not mixed with other assets. 

In this line, Celsius noted that the platform would launch communication with the affected customers on the implications of the ruling and the next course of action, the company said in a series of tweets on December 8. 

“We will be communicating directly with customers as quickly as practicable to share more on what this means and what’s next. We remain committed to ensuring that all similarly situated customers are treated similarly,” Celsius said. 

The affected assets 

Furthermore, Celsius clarified the type of assets the company will be compensating as per the ruling. According to Celsius: 

“The Court authorized Celsius to return “pure” Custody Accounts that were never in the Earn Program or Borrow Program, as well as “transferred” Custody Account assets below $7,575 (a specific legal threshold).”

Indeed, Celsius was among the first companies to feel the heat of the ongoing crypto bear market resulting in the halting of withdrawals. The company cited extreme market conditions before proceeding to file for bankruptcy.

Former Celsius CEO plea to Elon Musk

The company’s former CEO, Alex Mashinsky, has come under criticism for his management of the firms resulting in the loss of customer funds. Interestingly, following the collapse of Celsius, the former executive has cited increased threats to his family through social media. 

Consequently, on December 8, Mashinsky made a plea to Twitter (NYSE: TWTR) CEO Elon Musk to crack down on users threatening him. 

Notably, as reported by Finbold, Manshinsky’s wife allegedly cashed out $2 million in crypto before the bankruptcy announcement. 
Besides the Celsius bankruptcy hearing, the crypto market is awaiting the outcome of the FTX crypto exchange collapse. Notably, bankruptcy hearings against the exchange are ongoing, with former customers looking for a way to get back their funds.

Leave a Reply

Your email address will not be published. Required fields are marked *