According to a court filing, participants of the Custody program offered by the defunct cryptocurrency lender Celsius Network will be able to take 94% of the assets that are eligible for withdrawal.
Celsius emphasized that in order for customers to be eligible for withdrawals, some needed information must be updated in their Celsius accounts. This must be done prior to any withdrawals being completed.
Celsius noted that a user would not be allowed to withdraw distributable custodial assets from the debtors’ platform until the user updated his or her account with the necessary account changes, which would include customer data linked to Anti-Money Laundering and Know Your Customer regulations and details regarding the withdrawal destination address.
The bankrupt company stated:
“Eligible Users will also receive specific information related to gas and transaction fees associated with withdrawal activities. Eligible Users who do not have sufficient assets in their accounts to satisfy these fees will not be permitted to withdraw their assets.”
A precipitous fall in cryptocurrency values in July forced Celsius to lose hazardous bets, which led to the company’s decision to declare for bankruptcy in that month. The company is one of a series of crypto lending companies that went bankrupt after the market meltdown that occurred in the previous year.
A court-appointed examiner lambasted Celsius and its former CEO, Alex Mashinsky, this week for inadequate risk management and deceiving clients about the company’s business operations and financial health.
Apparently, Celsius had utilized Quickbooks to keep track of its accounts. The crypto lender with outstanding debts of $5.5 billion to customers and creditors managed its finances across its numerous divisions in 15 individual Quickbooks files without automated processes in place to provide aggregated figures.
