Celsius Seeks To Open Custodian Account Fund Withdrawals, Files Motion

Bankruptcy ridden crypto company Celsius had on Thursday filed a motion seeking to reopen customer withdrawals. The motion sought entry of an order authorizing the debtors to reopen withdrawals for custodian accounts. The request is pertaining to assets held belonging to certain customers in the custody program. The crypto lender filed for Chapter 11 bankruptcy on July 13 following several efforts to return loans.

Earlier, in June, the company halted customer withdrawals citing extreme market conditions. The action was in the interests of Celsius to honor its withdrawal obligations.

Celsius Custodian Withdrawals

In its preliminary statement in the motion, Celsius said its aim is to maximize value and to quickly distribute it to customers. It stated that the customer assets in custody program and withhold accounts are not likely a part of the company’s assets.

“The debtors’ principal goal in these chapter 11 cases is to maximize the value of their estates and distribute that value to their customers as quickly and fairly as possible. The cryptocurrency assets in the custody program and withhold accounts likely do not constitute property of the company’s estates.”

As of last week, the company said it holds custody assets of approximately 58,300 users. The custody customers are worth aaround $210.02 million in the aggregate, it mentioned in the motion. “Of the custody customers, approximately 15,680 hold pure custody assets that are worth, in the aggregate, approximately $43.87 million.” Also, around 5,000 users hold withhold assets that are worth approximately $15.33 million as of August 29. And of the withhold customers, approximately 470 hold pure withhold assets that are worth approximately $702,360.

On Setting Off Dues Owed To Customers

The company mentioned that it needs to consider the extent to which they may hold a right to setoff against dues owed to customers. “One of the principal goals in the chapter 11 cases is to return value to customers. It must be balanced along with the debtors’ duty to maximize the value of their estates for the benefit of all creditors and their obligation.”

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with crypto since 2016, he is now a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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