Former rising star Celsius Network has been under Chapter 11 protection since July 14 before the New York Bankruptcy Court. This step follows the brutal suspension of all withdrawals at the beginning of June, itself a consequence of the collapse of the TERRA-LUNA ecosystem. We learn today that injured customers could recover part of their funds in bitcoins and other crypto assets, under certain conditions.
Celsius has just filed a motion to obtain authorization to reopen withdrawals to some of its customers, whose funds have been frozen since the crypto app’s services were abruptly interrupted on June 4.
This request, filed with the United States bankruptcy court, would concern the sum of $50 million (out of the 225 million retained under financial lines Custody Program and Without Accounts). This envelope is supposed to allow the repayment of part of their funds to certain categories of customers.
However, the option will only be open to customers who used the services Custody Program and Without Accounts, and whose balance did not exceed $7,575. Services earn and Borrow however, will not be affected by this operation.
This precise amount of $7,575 owes nothing to chance. It actually corresponds to the legal ceiling below which a bankrupt company is required to return assets, under applicable US bankruptcy law.
The freezing of the Custody Program and Withhold Accounts funds would concern, according to the document, 58,300 users.
No details of the timetable or technical procedure for the recovery of funds blocked by customers have yet been disclosed.
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