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And More September 4, 2022 2 mins read

Bankrupt Crypto Lender Celsius To Enable Withdrawals, Returning $210 Million To Users

And More ı By Rochdi Rais

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Alex Mashinsky CEO of Celsius Network

Crypto lender Celsius Network will enable withdrawals for some of its customers, possibly returning $210 million to users locked out of their accounts this summer.

Celsius halted customer withdrawals in June, claiming it had been smashed by the massive crypto sell-off. It attempted to resume withdrawals afterward by raising money through a high-yield token, but eventually filed for bankruptcy in July.

However, a new court filing said the lender will allow withdrawals for customers who have custodial and withhold accounts, CoinDesk reported, noting about 58,300 users deposited over $210 million in those accounts.

"The Debtors' continued refusal to honor withdrawals of all Custody Assets has created tremendous hardship on their users as set forth in hundreds of letters filed on the docket and at hearings," the petition said, referring to letters sent to the Southern District of New York from Celsius customers. Many of them have expressed anger at being locked out of their accounts, and have pleaded to get their deposits back. 

Celsius owed $4.7 billion when it filed for bankruptcy. According to court filings, Celsius said the total value of its assets were only worth around $4.3 billion at the time it declared bankruptcy, around $17 billion less than what it reported in March of this year.

 

 

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Rochdi Rais
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Rochdi Rais

Rochdi Rais is the Fractional Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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