Crypto lending platform Celsius has announced that some of its users will be able to withdraw 100 percent of their original funds after more than 300 days of frozen withdrawals. Here are the details…
Good news for Celsius users
A statement came from Celsius that will delight users. The platform said that eligible users will be able to withdraw the remaining 6 percent of their distributable custody assets from the platform following court approval. Until January, those same users, those who largely only held funds in their custodian accounts, were able to withdraw up to 94 percent of their funds.
The announcement marked progress in repaying missing funds to some Celsius customers for the first time since the company frozen withdrawals in June 2022 before filing for bankruptcy in July. Many Celsius users reported that withdrawal attempts were piling up even though funds were supposedly available, claiming that some requests took several days to process.
Lawsuit filed against the founder of the platform
According to court filings, Celsius wanted to merge its UK and United States assets and apparently ensure that the two were treated alike in bankruptcy proceedings. Meanwhile, as Cryptokoin.com reported, the founder and former CEO of the platform, Alex Mashinsky, is facing a lawsuit filed by the New York Attorney General’s Office in January. On May 2, Mashinsky submitted a petition to dismiss the lawsuit, alleging that AG “parroted misinformation”.
The announcement comes at a time when the cryptocurrency market is facing increased regulatory scrutiny and many platforms are struggling to maintain customer trust. Celsius, one of the leading cryptocurrency lending platforms, has been under criticism from its users for months for its frozen withdrawals. However, the platform claims it is working to address these issues and is committed to providing a safe and reliable service to its customers.
Users have been waiting for months
Celsius’ decision to allow some users to withdraw 100 percent of their funds will put many people at ease, who have been waiting for months to access their assets. However, it is still unclear whether the platform will be able to fully compensate for the loss of reputation caused by the frozen withdrawals and the ongoing legal battles its founder has faced.
Despite the challenges faced by Celsius and other cryptocurrency platforms, the crypto asset market continues to grow. Demand for cryptocurrency loans and other financial services, which are increasingly being adopted by mainstream investors and financial institutions, is likely to continue to increase in the coming years. However, platforms will need to work hard to regain customer trust and ensure that they provide a reliable service to their users.
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