Celsius Withdrawals: 94% of Assets at Risk – Update Now!

Summary of the Article

  • Celsius, a bankrupt cryptocurrency lending firm, has published a list of eligible users who can withdraw 94% of their crypto assets from the platform.
  • Eligible users are required to update their accounts with AML and KYC information before withdrawals can be processed.
  • The examiner’s report also alleges that Celsius and its founder, Alex Mashinsky, failed to deliver on their promises regarding the Celsius (CEL) token and other business ventures.

Celsius Upcoming Withdrawals: Are Your Assets at Risk?

Celsius, a bankrupt cryptocurrency lending firm, has issued an official statement regarding the pending withdrawals for eligible users. In a 1,411-page court filing with the US Bankruptcy Court in the Southern District of New York, Celsius has provided a list of users who will be able to retrieve approximately 94% of their eligible custody assets. The remaining 6% of assets will be determined at a later date. Before processing any withdrawals, eligible users are required to update their Celsius accounts with the necessary information such as Anti-Money Laundering (AML) and Know Your Customer (KYC) data as well as withdrawal destination address. Otherwise they won’t be able to withdraw assets. Gas and transaction fees associated with the withdrawal process must also be covered by those withdrawing assets or they won’t receive them.

Examiner’s Report Reveals Allegations Against Celsius and Its Founder

The release of this information follows a court filing submitted by the court-appointed examiner, Shoba Pillay which sheds light on various aspects of Celsius‘ operations including its relationship with now-defunct FTX exchange. The report revealed that Celsius utilized Quickbooks software for financial management similar to FTX and Alameda Research. The examiner’s report also alleges that Celsius and its founder Alex Mashinsky failed to deliver on their promises regarding the Celsius (CEL) token and other business ventures providing detailed evidence of improper and self-serving behavior causing significant harm to many people.

What Does This Mean for Investors?

Investors may want to take caution following these reports given that there is still some uncertainty surrounding what will become of investor funds once they have been withdrawn from the platform. Furthermore due diligence should always be undertaken when investing in cryptocurrencies as there is always risk involved regardless if it is through an established platform or not.

Conclusion

As more details come out surrounding this case it would appear that investors may have lost money due to improper actions taken by those running Celsius however all hope is not lost as nearly all investors are set up for reimbursement or recovery in some form or another from their investments in cryptocurrencies via this platform

1. Februar 2023