• Celsius, a bankrupt cryptocurrency lending firm, has issued an official statement regarding the pending withdrawals for eligible users.
• Eligible users are required to update their accounts with AML and KYC information before withdrawals can be processed.
• Gas and transaction fees must also be covered in order for users to withdraw their assets.
Celsius, a bankrupt cryptocurrency lending firm, is providing a list of eligible users who can withdraw 94% of their crypto assets from the platform. The remaining 6% of assets will be determined at a later date. In order to process any withdrawals, eligible users must update their accounts with Anti-Money Laundering (AML) and Know Your Customer (KYC) data, as well as the withdrawal destination address.
The release of this information follows a court filing submitted by the court-appointed examiner, Sho Sugimoto. The report noted that „Celsius faces significant liquidity and solvency issues resulting from a lack of business operations and limited access to capital.“ In addition to providing the necessary information, eligible users will also be informed of the gas and transaction fees associated with the withdrawal process. Celsius stresses that those who do not have sufficient funds in their accounts to cover these fees will not be able to withdraw their assets.
In an effort to provide some relief to its users, Celsius is also providing a list of resources to help them during this difficult time. This includes an informational video explaining the process, as well as links to third-party websites that can provide additional information and support.
Celsius’s CEO Alex Mashinsky has also released a statement expressing his regret over the situation. He noted that „we are doing everything we can to ensure our users are taken care of and can access their funds while we work to restructure our business and return to operations“. He also acknowledged that the situation is difficult and that the company is working hard to make sure the process is as smooth as possible.
It is important to note that Celsius is not the only lending platform to face liquidity and solvency issues. Many other cryptocurrency firms have also been affected, and it is likely that more will follow in the near future. It is therefore important for users to remain vigilant and to do their due diligence when selecting a crypto lending platform.
Ultimately, it is essential for users to take responsibility for their own financial security. This means keeping up to date with the latest developments in the industry and always being aware of any potential risks. Withdrawing funds from Celsius is not without its risks, but it is important for users to be aware of the options available to them and to ensure their assets are secure.
