Bankrupt cryptocurrency lending company Celsius came up with a withdrawal process for users holding cryptocurrencies when it stopped withdrawals in June 2022.
Celsius released an official update on upcoming withdrawals on January 31, providing a list of users who can withdraw approximately 94% of eligible custody assets.
The company explained the process in a 1,411-page court document filed with the US Bankruptcy Court for the Southern District of New York, listing the full names of all eligible users and the types and amounts of crypto assets owed. .
Celsius emphasized that Eligible Users will be asked to update their Celsius account with certain required information before withdrawals can be processed. The requested information includes customer data related to anti-money laundering and know-your-customer policies, as well as details about withdrawal destination addresses, Celsius said, adding:
“Unless such Eligible User updates their account with the required account renewal, such Eligible User will not be able to withdraw Distributable Custody Assets from the Debtor’s Platform.”
The filing also states that it is not yet known whether eligible users will be able to withdraw the remaining 6% of their assets as the court will make a decision on the matter at a later date.
Eligible users will also receive certain details related to gas and transaction fees associated with upcoming withdrawals. “Eligible users who do not have sufficient assets in their accounts to meet these fees will not be able to withdraw assets,” Celsius wrote.
Related: Judge denies Celsius user’s motion for return of assets
The news comes as Celsius court-appointed examiners are filing court filings regarding certain aspects of their work with the lender, including details about a complex transaction with the collapsed FTX exchange. was brought to The investigative report also revealed that, like FTX and Alameda Research, Celsius used accounting software Quickbooks to track its finances.
Court-appointed examiner Shobha Pillay also wrote that Celsius and its founder Alex Mashinski failed to deliver on promises regarding Native Celsius (CEL) tokens and other business activities.