Tuesday, December 6, 2022
HomeLaw & PoliticsCelsius files motion to reopen withdrawals for limited customers

Celsius files motion to reopen withdrawals for limited customers

Celsius Network, a cryptocurrency lender that has been in bankruptcy proceedings for over a month, filed a motion with the United States Bankruptcy Court on September 1. The motion seeks to allow limited customers to withdraw their custodial assets from the platform.

According to the motion filings, the withdrawals will only apply to custody and withheld accounts, as well as custodied assets. It also mentions that Celsius has 58,300 users who have custodial assets (custody customers) valued at about $210.02 million. Custody, often known as asset custody, is a legal agreement in which assets of an individual or a fund are kept in trust by another.

The reaction to the motion has been mixed, with creditors pleased that Celsius Network has admitted that funds kept in its “Custody Program and Withhold Accounts likely do constitute property of their estates.”

However, as BnKToTheFuture.com CEO Simon Dixon stated, the community believes the amount Celsius wants to release is far insufficient.

The motion comes just one day after an ad hoc group of 64 custodial account holders filed a complaint saying that, under the terms of the accounts, title of custody assets “always stays with the user,” with the group trying to reclaim more than $22.5 million in assets.

A hearing on the motion is scheduled on October 6, as users’ assets have been locked up on the platform for more than two months.

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