Insolvent cryptocurrency lender Celsius has created a withdrawal process for users who have crypto on hold when it stops withdrawing in June 2022.
Celsius released an official update on the upcoming withdrawal on January 31st, providing a list of users who will be able to withdraw approximately 94% of their eligible custody assets.
The company filed the proceedings in a 1,411-page filing with the United States Bankruptcy Court for the Southern District of New York, listing the full names of all eligible users along with the type and amount of crypto assets owed.
Celsius confirms that eligible users will be prompted to update their Celsius account with certain required information before withdrawals are processed. The requested information includes customer data related to the Anti-Money Laundering and Know Your Customer policies as well as details about the withdrawal destination address, Celsius said, adding:
“Unless and until an eligible user updates his account with the required account update, that eligible user will not be able to withdraw his distributable custody assets from the debtor’s platform.”
The filing also notes that it is not yet known whether eligible users will be able to withdraw the remaining 6% of assets as the court will make a decision on this question later.
Eligible users will also receive specific details related to gas charges and transactions related to the upcoming withdrawal procedure. “Eligible users who do not have sufficient assets in their accounts to meet these charges will not be allowed to withdraw their assets,” Celsius wrote.
related: The judge denied a motion from Celsius users who wanted their assets back
The news comes amid a Celsius court-appointed examiner submitting court filings on certain aspects of the lender’s operations, including details of its complex dealings with the collapsed FTX exchange. The examiner’s report also stated that Celsius used Quickbooks accounting software to track its finances, as did FTX and Alameda Research.
Court-appointed examiner Shoba Pillay also wrote that Celsius and its founder Alex Mashinsky did not live up to their promises regarding the original Celsius token (CEL) and other business activities.