Celsius to Allow Withdrawals for Selected Users

In Brief

• Eligible customers will be able to withdraw 94% of the funds.
• The remaining users need clarity on when they can get their funds back.
• Tether CTO denies borrowing from Celsius.

Selected Celsius users have been reassured that they will be able to withdraw up to 94% of their funds from the bankrupt company. But for other clients, there may be a longer wait.

The market crash in May 2022 impacted the crypto lender Celsius, leading it to put a brake on customers’ withdrawal. The firm eventually filed for Chapter 11 bankruptcy in July 2022. Since then, clients have been desperately waiting for an opportunity to withdraw their funds.

Celsius Releases List of Eligible Clients
On Jan. 25, U.S. Bankruptcy Judge Martin Glenn ruled that Celsius creditors who deposited funds after the lender filed for bankruptcy should be allowed to withdraw the money.

In a Tuesday filing, Celsius submitted a 1,419-page document with the list of all the eligible users. The bankrupt firm will allow those users to withdraw 94% of their funds; however, the court will decide the fate of the remaining 6%.

The eligible users will be responsible for paying gas and withdrawal fees. The company will only allow withdrawal to users with sufficient funds for the fees. The Celsius users on the list will get more details via an email before Feb. 15.

The users not mentioned in the list have no clarity on when they can withdraw their funds.

Tether CTO Denies Borrowing From Celsius
The court-appointed examiner, Shoba Pillay, released a report on Tuesday with details of the platform’s operations. Page 189 of the report mentions,“Celsius’s loans to Tether were twice its credit limit.”

A Financial Times reporter wrote a Twitter thread summarizing the report, where he highlighted Tether borrowing from Celsius. Paolo Ardoino, the Chief Technology Officer (CTO) of Tether, clarified by replying to the Twitter thread that they never borrowed from the bankrupt firm. The CTO mentioned that it is either a “typo or a mischaracterization.”

However, as of writing, there has been no rectification from Shoba Pillay or the Celsius bankruptcy team.

Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.