Embattled Crypto Lender Celsius Allocates $25M for Withdrawals, Burns $500M in WBTC

Celsius Network established a crypto wallet with $25 million of crypto assets for the lender's custody account holders to withdraw, Arkham Intelligence said in a report. Eligible customers have withdrawn some $17.7 million of crypto assets, the firm's chief executive said in a Wednesday court hearing.

Timeline of Celsius, Wrapped-bitcoin

Crypto lender firm Celsius has announced that customers can now withdraw their assets from its platform eight months after the company filed for bankruptcy. According to an official tweet on March 2, withdrawals are now available, albeit for certain custody accounts only.

Bankrupt crypto lender Celsius Network has finally opened up withdrawals for certain customers, almost a year after it suspended withdrawals before filing for Chapter 11 bankruptcy.

Good news for some crypto customers has come in the form of a rare occurrence–the ability to withdraw funds from bankrupt cryptocurrency firm Celsius. After freezing withdrawals 263 days ago in the leadup to its bankruptcy filing.

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.

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.