Collapsed cryptocurrency lending platform Celsius Network has released its latest update on how it will allow customer withdrawals as bankruptcy hearings continue.
This is after a bankruptcy judge ruled that Celsius must return deposits to select customers whose funds were not mixed with other assets.
In this line, Celsius indicated that the platform will start communicating with affected customers about the consequences of the ruling and the company’s next course of action He said In a series of tweets on Dec. 8.
“We will be reaching out directly to customers as soon as possible to share more about what this means and what happens next. We remain committed to ensuring that all like-minded customers are treated equally,” Celsius says.
Further, Celsius clarified the type of assets the company will be compensated under the decision. By Celsius:
“The court allowed Celsius to return “clean” escrow accounts that were not previously in the Earn or Loan Program, as well as “transferred” escrow account assets of less than $7,575 (a specified legal limit).
In fact, Celsius was among the first companies to feel the heat of the cryptocurrency bear market, which brought withdrawals to a halt. The company cited harsh market conditions before moving forward with filing for bankruptcy.
The former CEO of Celsius appeals to Elon Musk
The company’s former CEO, Alex Machinsky, has been criticized for running companies that lost clients’ money. Interestingly, after Celsius’ collapse, the former president cited increased threats to his family via social media.
Consequently, on December 8, Mashinsky implored Elon Musk, CEO of Twitter (NYSE: TWTR), to crack down on users who threatened him.
Notably, as reported by Coinphony, Manshinsky’s wife paid $2 million in crypto prior to filing for bankruptcy.
In addition to the Celsius bankruptcy session, the crypto market is awaiting the outcome of the FTX exchange crash. Notably, bankruptcy hearings are underway against the exchange, with former clients looking for a way to get their money back.
Celsius post releases latest update on customer withdrawals after court order first appeared on Coinphony.