Crypto lending platform Celsius has announced that select users can finally access 100% of their original funds after more than 300 days of withdrawal restrictions. The company had previously frozen withdrawals amid financial turmoil and ongoing bankruptcy proceedings.
Court Approval Enables Release of Remaining Custody Assets
In an announcement on May 4, Celsius stated that eligible users could withdraw the remaining 6% of distributable custody assets from the platform following court approval. Before this decision, these users—primarily those who held funds solely in custody accounts—had been limited to withdrawing up to 94% of their assets.
This development marks a significant milestone in reimbursing affected Celsius customers who have struggled to access their funds since the company first imposed withdrawal restrictions in June 2022. Subsequently, Celsius filed for bankruptcy in July of the same year.
Many users of the crypto lending platform reported persistent backlogs of withdrawal attempts despite the supposed availability of funds. Some users even claimed that their withdrawal requests took days to process.
Celsius Aims to Consolidate UK and US Entities for Bankruptcy Proceedings
According to court documents, Celsius sought to merge its United Kingdom and United States entities to streamline the bankruptcy proceedings and have both treated uniformly. This move comes amidst additional legal challenges faced by the company and its founder.
Celsius founder and former CEO Alex Mashinsky is currently dealing with a lawsuit filed by the New York Attorney General’s office in January. On May 2, Mashinsky filed a motion to dismiss the case, alleging that the Attorney General’s accusations were based on misinformation.
The Celsius crypto lending platform grapples with bankruptcy proceedings and legal challenges. Its recent announcement allowing select users to withdraw 100% of their funds is a long-awaited relief. However, the company’s ongoing efforts to resolve these issues and regain user trust will be crucial for its future in the competitive world of digital asset management.
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