Eligible participants can withdraw 72.5% of their cryptocurrency holdings minus transaction fees.
Bankrupt cryptocurrency lending platform Celsius has started withdrawals for select users in a crucial development for the company and its clients amid financial instability and legal issues.
According to a filing in the United States Bankruptcy Court for the Southern District of New York, participants in its custody program falling under “Class 6A General Custody Claims” and “Class 6B Withdrawable Custody Claims” are now eligible for fund withdrawals, with a deadline for withdrawals set for Feb.
Eligible participants can withdraw 72.5% of their cryptocurrency holdings minus transaction fees.
Following its bankruptcy filing in July 2022, the platform has navigated various legal obstacles.
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In a subsequent update, creditors approved the company’s reorganization plan in September, paving the way to distribute around $2 billion in Bitcoin (BTC) and Ether (ETH). 20 announcement, Celsius said the core business of the NewCo company proposed under its restructuring plan will be Bitcoin mining rather than staking.
Celsius has been maneuvering through bankruptcy proceedings and legal challenges from multiple regulatory entities.