- Celsius declared on May 4 that its consumers will be allowed to withdraw the remaining 6%.
- New York’s attorney general’s office filed a lawsuit against Celsius in January.
Celsius Network, a cryptocurrency lending platform, has announced that certain customers will soon be able to recover their whole initial investments. Even though it has been almost a year since the company temporarily halted withdrawals.
Users of Celsius who have only ever had their funds in custodial accounts were previously restricted to withdrawing 94% of their balance or less.
After a court order, Celsius declared on May 4 that its consumers will be allowed to withdraw the remaining 6% of distributable custody assets. Before the beginning of this year, the same consumers could only withdraw 94% of their funds from their custody accounts.
Since the firm suspended withdrawals in June 2022 before filing for bankruptcy in July. This announcement represented the first step toward having some Celsius clients compensated for frozen withdrawals.
Despite the funds ostensibly being accessible. Several Celsius customers have stated that their withdrawal requests have been delayed by many days. According to court documents, Celsius wanted to merge its British and American operations. So that they would be handled uniformly throughout their respective bankruptcies.
Allegations of Poor Record-keeping
In a court battle pitting its customers against Series B investors. The insolvent crypto business is the latest target of charges of poor record-keeping in its organizational structure.
New York’s attorney general’s office filed a lawsuit against Celsius in January. Naming as defendants both founder and former CEO Alex Mashinsky. On May 2nd, Mashinsky filed a motion to dismiss the AG’s complaint, arguing that it “parrots misinformation.”
The Financial Conduct Authority (FCA) of the United Kingdom warned the company’s Celsius Network Limited subsidiary to halt U.K. activities in 2021, prompting the establishment of a Limited Liability Company in Delaware and an attempt to transfer assets via a series of financial transactions.
