The Celsius platform has filed a request with the court to reimburse some of its users. If the request were successful, $50 million would be returned to their original owners. However, this only applies to clients who have deposited assets with Celsius in non-speculative accounts.



Celsius wants to reinstate withdrawals for some customers

Celsiuspreviously declared bankrupt, has just announced its desire to return part of the funds belonging to its customers. This decision, if accepted by the deciding tribunal, would release $50 million in order to return them to clients who had deposited their funds with Celsius in a non-speculative manner.

Indeed, Celsius divides the wallets of its customers in 2 distinct ways, those established to generate revenue (Earn & Borrow) and those dedicated to the storage of cryptocurrencies. Thus, from a legal point of view, the funds of the latter continue to belong to their original owners.

Note, however, that this is only a minority share of said portfolios. Indeed, in total, Celsius’ customer deposit accounts total $210 million. A sum that is also derisory in comparison with the total sums owed by Celsius to its customers who participated in the “Earn” program, which are around 4.3 billion dollars.

The motion comes after Celsius customers with deposit accounts with the company demanded that their funds be returned to them. independently of the bankruptcy proceedings. We can thus read on the document filed in court:

“The Debtors have identified material cryptocurrency assets that they believe are not their estate assets and for which the Debtors do not believe they have a valid cause of action under applicable law. Accordingly, Debtors believe it is fair and appropriate to allow Clients to withdraw such Cryptocurrency Assets at this stage. »

 

Soon new funds released?

Celsius will only get a answer to his request that on October 6. Although this is only a first step for Celsius vis-à-vis some of its customers, it is possible that this kind of decision extends to more of themaccording to a statement shared yesterday on Twitter:

“While today’s motion, which will be considered at a later hearing, only applies to a select group of customers, we are preparing to address issues relating to all customers as we go along. as we move forward. We continue to pursue all available paths as quickly as possible. »

According to a document filed in mid-August by the law firm Kirkland & EllisCelsius is expected to be in deficit by October. However, due to a technicality, the company revealed that it expected to receive over $60 million in cash and not cryptocurrencies, enough to let it breathe a little longer.

Source : court document