Celsius will soon Allow the Withdrawal of Funds

In the midst of bankruptcy, the cryptocurrency lending company, Celsius has frozen withdrawal on its platform. Currently, Celsius is looking to refund users’ cryptos blocked since June 2022. This Tuesday, it disclosed a list of its “lucky” creditors allowed to withdraw almost all of their blocked funds on the platform.

Celsius unveils list of users allowed to withdraw

In its official update, released on Jan. 31, Celsius provided a 1,409-page list containing the full names of customers who are allowed to make withdrawals. The latter specifies the amount and type of crypto assets to be redeemed for each creditor. As a reminder, the company had blocked withdrawals from its platform since June 2022.

94% of the users on the list will be able to have their assets blocked on the platform. However, the company says that eligible customers will be able to withdraw their funds, only after meeting the following conditions:

  • Creditors must have their account verified via a KYC (Know Your Customer), an anti-money laundering procedure ;
  • The amount must be at least $7,575;
  • Customers must have enough assets to pay the withdrawal fee.

For the remaining 6%, Celsius said it has not yet set a date for the withdrawal.

Celsius used other clients’ funds to pay back the clients on the list!

Despite Celsius‘ good faith in refunding users’ funds, the various examiners of the case have made some startling revelations about its implementation.

Recently, Shoba Pillay, an independent examiner appointed by the U.S. Bankruptcy Court Judge, revealed that the empire of Alex Mashinsky, the co-founder of Celsius, operated like a Ponzi scheme.

According to a 689-page document reported by the independent examiner, Celsius used the funds of some clients to pay off the debts of others…

It’s often repeated, but it’s essential to do your research before putting your cryptos on a platform. Nevertheless, the best way to secure them is still to keep them on a Cold wallet like a Ledger key.