Crypto lending company Celsius has announced that customers can now withdraw their assets from the platform eight months after the company went bankrupt. According to officials tweet on March 2, withdrawals are now available, although for certain hold accounts only.
This development follows a court order in January, which authorized Celsius to proceed with the withdrawal. However, only assets in the Celsius custody account can be withdrawn based on this directive.
This includes “Pure Custody” assets that were never in an Earn or Borrow account and “Transferred Custody” assets that were moved from an Earn or Borrow account to a custodial account 90 days before Celsius filed for bankruptcy.
However, custodial accounts that have received more than $7,575 in assets from the Earn or Borrow Program are not eligible for withdrawals. According to the court order, only 94% of the distributable assets can be withdrawn from all eligible accounts for now.
Is Celsius Making a Comeback?
In mid-July 2022, Celsius filed for Chapter 11 bankruptcy leading the crypto credit venture for a total of $4.7 billion in customer debt. The drop in Celsius was driven mainly by the value of some crypto assets collapsing rapidly due to the widespread liquidity crisis.
However, after the collapse, crypto companies have been working internally to restructure their operations and pay off their debts. February 15, 2023, Celsius declare acquisition by digital asset investment firm NovaWulf Digital Management.
This agreement with NovaWulf aims to sponsor Celsius’ reorganization plan, allowing the company to close the Chapter 11 bankruptcy process and begin the distribution of full funds from June.
In this regard, Celsius intends to pay all creditors who have received money in liquid cryptocurrency. However, getting a creditor with a claim of less than $5,000 will be considered “convenience class” and only eligible for 70% of the claim, paid in BTC, ETH, and USDC.
The news of the acquisition by NovaWulf, coupled with the start of withdrawals from captive accounts, all show signs that Celsius may just return to the crypto scene. However, it is still too early to say.
Meanwhile, Crypto Market Awaits Major Event
In other news, the cryptoverse is still hoping for a massive asset recovery by defunct crypto exchange Mt Gox this month. In 2014, the Tokyo-based exchange stopped operations and filed for bankruptcy after revelations about a hack that caused the loss of around 750,000 BTC to its customers.
In 2021, an agreement was made between Mt.Gox trustee Nobuaki Kobayashi and CoinLab Inc. to repay the creditors of Mt. Gox uses leftover Bitcoins from bankruptcy proceedings. However, the date for the commencement of this exercise has been continuously moved up to March 10, 2023.
The main concern regarding the repayment of Mt. Gox is from the potential negative effects of “dumping” many assets into the crypto market at once. Based on popular reports, the lenders of Mt.
That said, the crypto market is currently experiencing a general price correction, with most assets recording small losses. Bitcoin, the world’s No.1 cryptocurrency, is currently valued at $22,388.00, having decreased by 4.61% in the last 24 hours.
BTC trading at $22,388.00 | Source: BTCUSD chart on Tradingview.com
Featured Image: PR Newswire, chart from Tradingview.