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Withdrawal Process Opens for Select Celsius Customers

1 min
Updated by Kyle Baird
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In Brief

  • Celsius announced a liquidation plan, allowing users to withdraw their assets, but customers must comply with AML rules.
  • Withdrawal fees for retrieving assets from Celsius will be deducted from customers' accounts on a "per withdrawal" basis.
  • Recent developments in Celsius bankruptcy proceedings include the liquidation of over $24 million in altcoins.
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The United States Bankruptcy Court for the Southern District of New York has specified the process through which customers of the defunct crypto lending platform Celsius can retrieve their cryptocurrency assets.

“Holders will be asked to update their Celsius account with certain required information to process withdrawals, including specific customer data related to Anti-Money Laundering (AML),” the filing declared.

Process Outlined for Celsius Customers

As per the court filing, customers will incur the cost of deducting the transaction expenses associated with sending crypto assets to them.

Meanwhile, it was noted that the withdrawal fees will be charged on a “per withdrawal” basis based on the withdrawal fees set out by the debtors.

Initial Withdrawal Fees Associated With Each Crypto. Source: Stretto
Initial Withdrawal Fees Associated With Each Crypto. Source: Stretto

Additionally, it emphasized the importance of customers updating their accounts with the necessary information. Failure to comply with the AML regulations will render account holders unable to access their assets.

Read more: DeFi Lending Explained: What Are DeFi Loans?

Celsius Liquidation Plan In Recent Times

However, there have been several developments in the Celsius bankruptcy proceedings in recent times.

On July 17, Celsius started liquidating over $24 million of altcoins. These include Chainlink (LINK),  Synthetix Network (SNX), BNB coin, 1inch, and 0x Protocol (ZRX), among others.

Furthermore, the largest liquidated among the group of altcoins was LINK with approximately $8.5 million.

In more recent news, Celsius is reportedly facing struggles in its attempt to turn into a Bitcoin mining business.

A report recently stated that it reduced its post-bankruptcy business plans to focus only on Bitcoin mining.

However, the SEC is reportedly hindering specific staking and lending activities, creating challenges for conducting business operations.

Read more: Top 5 DeFi Lending Platforms

Top crypto platforms in the US | March 2024

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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