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Bankrupt cryptocurrency lending firm Celsius had come up with a withdrawal process for users who had their crypto in its custody when it stopped withdrawals in June 2022.
Celsius released an official update on upcoming withdrawals on Jan. 31, providing the list of users eligible to withdraw approximately 94% of qualified custody assets.
The cabinet outlined the process in a 411-page case before the U.S. bankruptcy court for the South District of New York, listing the first and last names of all eligible users as well as the type and amount of crypto assets receivable.
Celsius noted that eligible users would be encouraged to update their Celsius count with certain required information prior to processing any withdrawals. The information requested includes client data related to AML and KYC policies, as well as information on the destination address of the removal, Celsius said, adding:
"Until a qualifying user updates their account with the necessary updates, this eligible user cannot remove its distributable custodial assets from the debtor platform."
The deposit also indicates that it is still unclear if eligible users will be able to remove the remaining 6% of the asset as the tribunal will decide on that at a later date.
Eligible users will also be provided with specific information about gas and transaction charges associated with future withdrawal procedures. "Eligible users who do not have enough assets in their accounts to meet these fees will not be allowed to remove their assets," writes Celsius.
Related: Judge denies motions from Celsius users seeking to reclaim assets
The news comes amid Celsius’s court-appointed examiner submitting a court filing on certain aspects of operations at the lender, including details about its complex dealings with the collapsed FTX exchange. The examiner report also revealed that Celsius used the accounting software Quickbooks to keep track of its finances, just like FTX and Alameda Research did.
Court-appointed examiner Shoba Pillay also wrote that Celsius and its founder Alex Mashinsky did not deliver on their promises surrounding its native Celsius (CEL) token and other business activities.
