Bankrupt Crypto Lender Celsius Re-Opens Withdrawals for Certain Custody Accounts

Bankrupt crypto lender Celsius has opened up withdrawals for assets in certain custody accounts, according to a tweet on Tuesday.

Eligible users will be able to withdraw all the funds in their accounts up to the permitted withdrawal amount, the company said in an earlier blog post.

Celsius secured approval to process certain withdrawals according to several U.S. court orders in January. In February, Celsius published a list of names of users who could withdraw assets locked on the platform, with the company saying at the time it had permission from the New York bankruptcy court to distribute 94% of each user’s assets. Eligibility for withdrawals was dependent on certain criteria such as that transfers had to be less than $7,575 when they were originally made, the February document said, and users had to have enough assets on the platform to cover any withdrawal fees.

Celsius paused withdrawals citing extreme market conditions last June, and a month later filed for Chapter 11 bankruptcy protection as it struggled with liquidity issues.

The crypto lender was hurt by the crypto winter in which billions have been wiped out of the crypto market in months, propelled by several prominent companies collapsing such as stablecoin issuer Terra.

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