Celsius may allow some users to take 94% of their assets

Representatives of the company Celsius Network, which went bankrupt, said that they have developed a procedure according to which some clients can take 94% of their assets that were on the exchange. Yesterday the company published a list of users who have the right to withdraw about 94% of their assets.

Before customers can withdraw funds, they will need to complete KYC and AML procedures. The first (Know Your Customer) requires customers to provide identification of their personalities, and the second (Anti Money Laundering) confirms that they are not engaged in criminal activities. In addition, users will be required to provide an address to withdraw their funds.

Celsius Network decided to legalize everything, and the return procedure, along with a complete list of clients, was provided in a 1,411-page court filing filed in the Southern District of New York Bankruptcy Court. Representatives of the cryptocurrency credit exchange provided in this document not only the full names of customers who will be able to withdraw their funds. but also data on debit cryptocurrency assets. Recall that it was the provision of credit services that was a unique feature of Celsius Network, which distinguished them from many competitors.

Representatives of the crypto company also report that at the moment the fate of the remaining 6% of users' assets is unknown due to the fact that the court will make a decision related to them later. Unfortunately, users will have to pay a withdrawal fee. If customers do not have the required amount, which is enough for both withdrawals and fees, then they will not be able to withdraw money.

Late last year, a court ordered Celsius Network to return $44,000,000 to its customers. This came after the company said it had the right to own most of the client funds, according to the exchange's terms of service.

Letitia James, New York State Attorney General, filed a lawsuit on January 5 against Celsius Network co-founder and former CEO Alex Mashinsky. The lawsuit alleged that Mashinsky, along with other companies associated with Celsius, was responsible for defrauding hundreds of thousands of investors in an amount that amounts to several billion dollars.

Journalists have also previously reported that Celsius wants to issue debt tokens. The representatives of the crypto company wanted to provide these coins to large creditors, while less significant investors were to be compensated in a cryptocurrency alternative.