Bankrupt crypto lender Celsius announced in a statement that it will resume payments to its eligible users.
The platform plans to contact people using emails and in-app notifications. However, no exact date has been given for the resumption of payments. We also learned that the feature will initially only be available to customers in the United States, while international users will have to wait for further court decisions.
A by court order the lender will return assets belonging to two categories. One category is a “clean” assets, i.e. cryptocurrencies that were never part of the Earn or Borrow program. And the other one is “transferred” assets transferred from the Earn or Borrow program in the 90 days before Celsius filed for bankruptcy in July.
There will be no limit on the amount of clean assets that can be withdrawn. On the other hand, payouts are only available to users with less than $7,575 in transferred assets. Those who exceed this amount are still not entitled to receive their assets. Furthermore, people currently have access to 94% of their wealth. The court will later decide when and how the remaining 6% can be taken. The court also did not decide when Earn users might get their money back.
Under the order, current and former employees of Celsius and its subsidiaries are not eligible for payments. Furthermore, those who had active loans on December 20, 2022, as well as eligible persons whose assets are less than the payment transaction fee, will not be able to receive their money either.
Account must be updated to access payouts
In order to avoid fraud, customers must also provide up-to-date know-your-customer (KYC) information, even if they have previously verified this information. In addition, they must provide a payment address, which is only available following 24 hours. becomes available. Celsius also requires additional information regarding the destination address to be provided to ensure that the wallet actually belongs to the user.
Finally, according to the announcement, the platform expects a lot of traffic following the re-opening of payments, so the processing may take more than 24 hours.
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