Bankrupt cryptocurrency lending firm Celsius had devised a withdrawal process for users who had their crypto in their custody when stopped withdrawals in June 2022.
Celsius published an official update on the upcoming withdrawals on January 31, which provides the list of users who will be eligible to withdraw approximately 94% of the eligible custodial assets.
The firm filed the process in a 1,411-page court filing with the United States Bankruptcy Court for the Southern District of New York, listing the full names of all eligible users along with the type and amount of crypto assets indebted.
Celsius emphasized that eligible users will be required to update their Celsius account with certain required information before withdrawals will be processed. The requested information includes customer data related to anti-money laundering and Know Your Customer policies, as well as details about the withdrawal destination address, Celsius said, adding:
"Unless and until an eligible user updates their account with the required account updates, such eligible user will not be able to withdraw their distributable custodial assets from the debtor platform."
The filing also notes that it is not yet known whether eligible users will be able to withdraw the remaining 6% of the assets, as the court will make a decision on this issue at a later date.
Eligible users will also receive specific details regarding gas and transaction fees associated with upcoming withdrawal procedures. โEligible users who do not have enough assets in their accounts to satisfy these fees will not be able to withdraw their assets,โ Celsius wrote.
Related: Judge Denies Motions From Celsius Users Seeking To Claim Assets
The news comes amid the judicial appointment of Celsius. examiner presenting a court filing about certain aspects of operations at the lender, including details about its complex dealings with the collapsed FTX exchange. The examiner's report also revealed that Celsius used Quickbooks accounting software to keep track of his finances, as did FTX and Alameda Research made.
Court-appointed examiner Shoba Pillay also wrote that Celsius and its founder Alex Mashinsky failed to deliver on their promises around their native Celsius (CEL) token and other business activities.
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