Cryptolender Celsius stressed that eligible users must update their accounts with certain information before any withdrawal requests can be processed.
The bankrupt crypto-lender disclosed the names of users eligible to withdraw 94% of their frozen assets from the Celsius platform, according to a January 31 court filing. The published list included the type and amount of cryptoassets returned to each customer.
The crypto lender emphasized that eligible users must update their accounts with certain information before any payouts can be processed. According to the court filing, the required information would be related to anti-money laundering (AML) and know-your-customer (KYC) guidelines, as well as information on the destination address of the payment.
A Celsius information according to this, the user may be prevented from withdrawing his own assets from the platform if he does not have sufficient balance to satisfy the gas fees and transaction fees related to the withdrawal activity. They also added that payment requests may not be processed immediately, given the expected high number of such requests. Celsius plans to reach out to eligible users as early as February 15.
In the meantime, the bankrupt creditor also announced that the court will decide later whether the eligible users can withdraw the remaining 6% of their balance.
On December 7, the lender was authorized to return to users “pure” and “transferred” crypto-assets below a specified legal threshold, as well as digital assets not supported on its platform.
On January 31, Celsius’ court-appointed investigator published a seriously damning report on the company’s operations. According to the investigator, cryptolender Celsius operated as a Ponzi scheme, adding that it used customer deposits to maintain their CEL token and enrich its two founders.
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