- Celsius filed a petition looking for the authority to release several customer accounts.
- The company stated that “the funds kept in the Custody Program and Withhold Accounts do not belong to the company.
Celsius, a crypto lending company who is filed for Chapter 11 bankruptcy, is looking to give the customer funds kept in its Custody Program and Withold Accounts back, supporting the statement that the funds do not belong to the company.
Some clients of the company may get comforted very soon.
In the current chapter of bankruptcy of the company events, Celsius wanted permission from the court to release the funds of specified clients.
In the filing, the crypto lending company states that the funds kept in its Custody Program and Withhold Accounts do not belong to the company as per the policy. It will be thereafter “favorable and correct” for clients to get access to withdraw their funds.
The value of these assets stood at about $210 million and $15 million in the Custody Program and Withhold Accounts, respectively, on August 29. The initial sum is estimated from the deposits of nearly 58,300 clients and later of about 5,680.
The next hearing.
A hearing is scheduled for October 6, 2020, at 10:00 EST. The hearing will be done in the Bankruptcy Court of the Southern District of New York. The hearing will mainly focus on discussing the matter and likely sanctioning the act.
Celsius belongs to a “CeFi” company, which means a centralized authority that targets to get benefited from the yield opportunities often found in Decentralised Finance (DeFi) protocols in the name of its customers.
In June 2022, the crypto lending company Celsius put a ban on withdrawals quoting the extremely volatile market behavior. The company filed for Chapter 11 bankruptcy after a month, disclosing that it was going through a $1.2 billion hole in its balance sheet.
The filing for bankruptcy triggered an exclamation from the company’s clients, many of which stated on social media to have lost all of the savings which they did in their life to the firm.
The survey brought upon the company by its filing for bankruptcy which additionally led to reports that the chief executive officer of Celsius, Alex Mashinsky, had earlier been trading Bitcoin with the money of their clients. This activity was done without any permission from senior traders at the company.
Source: https://www.thecoinrepublic.com/2022/09/03/celsius-wants-to-release-225m-in-customer-funds/