According to Cointelegraph: Celsius, has allowed eligible users to begin cryptocurrency withdrawals, marking a crucial development for the firm and its customers amid financial peril and legal complications. According to a filing in the Southern District of New York's United States Bankruptcy Court, “Class 6A General Custody Claims” and “Class 6B Withdrawable Custody Claims” participants in the company's custody programme are now authorised to withdraw funds, with a deadline set for February 28, 2024.
Eligible users have the opportunity to withdraw up to 72.5% of their cryptocurrency holdings, although transaction costs may decrease the total amount. Customers who rejected the reorganisation plan are exempt from this provision and their assets will be managed separately by a Litigation Administrator for a six-month period.
Celsius's journey to this critical juncture has been riddled with stumbling blocks. Following a bankruptcy filing in the previous summer, the platform has surmounted numerous legal obstacles. A settlement scheme, offering account holders 72.5% of their funds in a pair of instalments over 2023, was endorsed in March.
September saw approval from creditors for Celsius’s reorganisation plan, enabling the allocation of roughly $2 billion in Bitcoin and Ether. This move will see the platform’s equity passed to NewCo, monitored by the Fahrenheit consortium, and the primary function of this restructured entity will be Bitcoin mining, as opposed to staking.
Despite settling with the FTC for $4.7 billion, Celsius continues to face multiple lawsuits from regulatory bodies including the SEC, FTC, and CFTC. These lawsuits predominantly focus on allegations of customer deception by the firm and CEO Alex Mashinsky, with Mashinsky set to face a criminal trial in the forthcoming fall.
