At a recent hearing, a bankruptcy judge granted Celsius approval to process withdrawal requests from some clients. The court order comes as a relief to the bankrupt crypto lender’s customers who have been waiting since July 2022 to access their funds.
Celsius to return funds and airdrop Flare
According to the court order, Celsius has been authorized to return the cryptocurrency that its customers had deposited before it filed for bankruptcy last year. Customers can withdraw their funds "less gas or transaction fees to withdraw or transfer digital assets". However, all withdrawals should be in crypto form, no arbitrary removal will be permitted.
Justice Martin Glenn signed for a second as well, who authorized the bankrupt crypto lender to send flare chips to qualifying account holders, for example, clients who held at least 1 xrp during the instantaneous radiography. The snapshot took place in December 2020 and allows cardholders to receive a credit level for each depot in their account.
The lawyers representing Celsius have launched the idea of issuing a new crypto token to reimburse the creditors of the company. The new token was part of a larger plan to restructure the company as a publicly listed "turnaround company". This plan would see creditors receive the assets.