Creditors of Bankrupt Cryptocurrency Lender Begin to Withdraw Their Money

Crypto lender Celsius, which filed for bankruptcy last summer, is starting to open withdrawals to some users.

Custodial Program customers with “Class 6A General Custody Requests” and/or Class 6B Withdrawal Custody Requests may begin withdrawing their funds from the platform “on or about November 29,” according to a court document. They have until February 28 to complete the transactions.

Eligible users, excluding transaction fees, unless they have previously reached a settlement They will be able to withdraw 72.5% of their crypto money. In the document, customers who voted to reject the restructuring plan It is stated that it will not participate in this distribution and its funds will be collected in a separate wallet and will be managed by the Case Manager for the next six months.

According to posts on X, formerly known as Twitter, some users have already tried to withdraw money, but Because they are having trouble logging into their accounts. he complained.

According to an application made in September, approximately 58,300 users had assets deemed “custodial (service-receiving) assets” by the court. approximately 210 million dollars It has value.

Celsius filed for bankruptcy in July 2022. In March, the court ruled that the funds of users holding cryptocurrencies in deposit accounts in Celsius 72.5% It approved a settlement plan that would allow them to receive it in two payments through 2023.

Creditors, in September Bitcoin and Ethereum worth approximately $2 billion They approved the restructuring plan that provided for its disbandment. In return, Celsius was transferred to NewCo, managed by the Fahrenheit consortium that purchased the company.

Fahrenheit describes the company to be restructured as a cryptocurrency mining and staking company plans to make it.

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