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

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.