Backlog of withdrawal requests slows down Celsius custody program

Celsius customers participating in the company's custody program can now withdraw their funds. However, some users are experiencing delays in processing their requests due to a backlog of pending withdrawals.

Timeline of Celsius

2022 was a year of phenomenal cryptocurrency blowouts, as several projects collapsed and many more are on life support after the entire ecosystem was shattered. The fallout from these digital currency projects has not only removed billions of dollars in value from the crypto economy, but also eroded trust.

Cryptocurrency lending company Celsius failed to accurately record transactions between its affiliates, leaving it difficult to fully determine intercompany claims, according to court documents filed on Thursday. The documents were filed in response to a court order requesting information on potential claims against its affiliates, following the company's bankruptcy filing in July 2022.

“It is time to allow the Debtors' customers to propose their own plan for the assets that they were defrauded into investing with Celsius,” said a Withhold account holders' filing.

Soon after the examiners' findings were filed, the Celsius Official Committee of Unsecured Creditors held a two-hour town hall meeting. Celsius' official creditor committee's attorney has dismissed claims that the offer for its crypto assets has been rejected.

On January 31, Paolo Ardoino—the Chief Technology Officer of Tether and Bitfinex crypto exchange— cleared things up on Twitter regarding USDT's relationship with Celsius. He stated that they have never borrowed from or had any loan arrangement with the bankrupt cryptocurrency lender.

Cryptocurrency lending company Celsius (CRYPTO: CEL), 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.

Celsius Official Committee of Unsecured Creditors attorneys have criticised crypto blogger Tiffany Fong for releasing information about prospective Celsius offers, saying it would hurt negotiations.

Popular crypto critic Peter Schiff has called out regulators in the United States of America for not discovering that bankrupt crypto lender Celsius network operated as a Ponzi scheme.

The blog explained that Binance offered a bid of $15 million for the assets, noting that $12 million would be deposited to Celsius estate and $3 million to be disbursed to relocated customers on a pro-rata basis.

Tiffany Fong, a crypto blogger, has shared documents she claims she obtained in late December detailing several bids for Celsius' crypto assets. According to leaked information shared by crypto blogger Tiffany Fong, at least five firms bid on Celsius Network's crypto assets, including Binance, Bank To The Future, and Galaxy Digital.