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Bankrupt crypto lending protocol Celsius reopen withdrawals for specific accounts

celsius crypto network open withdrawals for customers

Celsius network froze customer withdrawals and filed for Chapter 11 bankruptcy in July 2022

U.S based crypto lending protocol Celsius network has released a list of names of users who are eligible to withdraw assets locked on the platform.

The 1400-page document submitted to the New York bankruptcy court shows that the court has granted permission to distribute 94% of each user’s assets. However, there’s an eligibility criteria on the withdrawals.

The asset transfers had to be less than $7575 and the users should have enough assets on the platform to cover any withdrawal fees.

Celsius network had paused withdrawals back in June 2022, citing liquidity concerns. It soon filed for Chapter 11 bankruptcy in July to restructure its loans and to get protection from creditors.

The whole drama started after the collapse of terra UST stablecoin which wiped out billions of dollars from the market.

Almost every leading crypto platform filed for bankruptcy in the name of liquidity crunch. Voyager Digital, Genesis, Silvegate and FTX exchange are some of the leading players that fell in the crypto bear market.

Voyager Digital has been bought by Binance exchange while FTX exchange aims to resume full operation under the leadership of new CEO John J. Ray III.

Silvergate Capital on the hand is facing liquidity crunch in 2023 and has sold assets worth billions of dollars to save itself from bankruptcy.

The U.S. Department of Justice and SEC are working to crack down the crypto market by suing a number of platforms involved in money laundering activities and related crypto frauds.

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