Celsius Bankruptcy: Eligible Users To Withdraw Majority Of Assets

Cryptocurrency lending company Celsius CEL/USD, which filed for Chapter 11 bankruptcy protection last July, recently released the names of users who are eligible to withdraw most of their assets held on the platform.

The 1,400-page document, filed with a New York bankruptcy court, shows that the company has received court authorization to distribute 94% of each user's assets, subject to certain conditions.

These conditions include that the transfer was less than $7,575 when made, and the users must have sufficient assets to cover any withdrawal fees and update their anti-money laundering and know-your-customer information.

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The filing stated, "whether and when Eligible Users are entitled to a distribution of the remaining 6% will be determined at a later date by the Court."

Eligible customers will receive an email on or around February 15, with instructions on how to process the transfers.

A report filed before the U.S Bankruptcy Court for the Southern District of New York on Tuesday by independent examiner Shoba Pillay stated that Celsius lacks proper asset and liability tracking and attempted to cover up false statements made publicly by its Chief Executive Officer Alex Mashinsky.

Despite presenting an optimistic financial picture to its customers, the company was struggling with a liquidity crunch, employees internally referred to it as a "sinking ship."

The report also revealed that Celsius didn't disclose information on purchases of its token CEL and used customer assets as collateral for loans to cover holes in its balance sheet.

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