Selected Celsius users have been reassured that they will be able to withdraw up to 94% of their funds from the bankrupt company. But for other clients, there may be a longer wait.
The market crash in May 2022 impacted the crypto lender Celsius, leading it to put a brake on customers’ withdrawal. The firm eventually filed for Chapter 11 bankruptcy in July 2022. Since then, clients have been desperately waiting for an opportunity to withdraw their funds.
Celsius Releases List of Eligible Clients
On Jan. 25, U.S. Bankruptcy Judge Martin Glenn ruled that Celsius creditors who deposited funds after the lender filed for bankruptcy should be allowed to withdraw the money.
In a Tuesday filing, Celsius submitted a 1,419-page document with the list of all the eligible users. The bankrupt firm will allow those users to withdraw 94% of their funds; however, the court will decide the fate of the remaining 6%.
The eligible users will be responsible for paying gas and withdrawal fees. The company will only allow withdrawal to users with sufficient funds for the fees. The Celsius users on the list will get more details via an email before Feb. 15.
The users not mentioned in the list have no clarity on when they can withdraw their funds.
Tether CTO Denies Borrowing From Celsius
The court-appointed examiner, Shoba Pillay, released a report on Tuesday with details of the platform’s operations. Page 189 of the report mentions, “Celsius’s loans to Tether were twice its credit limit.”
A Financial Times reporter wrote a Twitter thread summarizing the report, where he highlighted Tether borrowing from Celsius. Paolo Ardoino, the Chief Technology Officer (CTO) of Tether, clarified by replying to the Twitter thread that they never borrowed from the bankrupt firm. The CTO mentioned that it is either a “typo or a mischaracterization.”
However, as of writing, there has been no rectification from Shoba Pillay or the Celsius bankruptcy team.
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Main content of the article:
Celsius, a crypto lender, filed for Chapter 11 bankruptcy in July 2022 after being impacted by the market crash in May 2022. Eligible clients were recently allowed to withdraw 94% of their funds, with the remaining 6% still to be decided by the court. Clients not mentioned in the list have no clarity on when they can withdraw their funds. Tether CTO Paolo Ardoino denied borrowing from Celsius, claiming it was either a typo or mischaracterization in the court-appointed examiner’s report. No statement has been issued by the examiner or Celsius bankruptcy team.