After the court's decision, Celsius offers the most recent news concerning consumer withdrawals.
As the bankruptcy proceedings continue, the defunct cryptocurrency financial product Celsius Network has released the most recent report regarding the progress being made toward allowing customers to withdraw their funds.
This is because a court overseeing Celsius' bankruptcy case decided (1) that the company should repay deposits to certain clients whose money had not been combined with other assets.
In this particular line, Celsius emphasized that the platform would initiate communication with the affected clients on the consequences of the ruling and the next step that would be taken, as stated by the firm in a tweetstorm (2) on December 8.
Celsius says, "We will be communicating directly with customers as quickly as practicable to share more on what this means and what's next. We remain committed to ensuring that all similarly situated customers are treated similarly."
Who Will Get the Refunds?
In addition, Celsius clarified the categories of assets the firm will be paying in accordance with the ruling. The following, according to Celsius:
"The Court authorized Celsius to return "pure" Custody Accounts that were never in the Earn Program or Borrow Program, as well as "transferred" Custody Account assets below $7,575 (a specific legal threshold)."
Celsius was one of the very first organizations to feel the pressure of the recent crypto bear market, resulting in freezing customer withdrawals. Before proceeding with the bankruptcy filing, the company stated that severe market conditions were the primary reason for its decision.
An appeal from the former CEO of Celsius to Elon Musk
Alex Mashinsky, who was once the chief executive officer at the company, has come under fire for his administration of the firms, which led to the theft of customer monies. Interestingly, as a direct result of Celsius's demise, the former executive has reported an increase in the number of threats made against his family via social media.
As a direct result of this, on December 8, Mashinsky pleaded with Elon Musk, the CEO of Twitter, to take stricter action against those who threatened him.
Notably, Manshinsky's wife allegedly took out $2 million worth of cryptocurrency prior to the announcement that the company was filing for bankruptcy.
In addition to the bankruptcy court for Celsius, the cryptocurrency industry is awaiting the results of an investigation into the collapse of the FTX crypto exchange. It is important to note that the exchange is currently facing bankruptcy proceedings, and many of its former clients are looking for a method to get their money back.