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Celsius Wants To Reopen Withdrawals For Some Customers, Here’s Why

2 Sep, 20222 min readOther
Celsius Wants To Reopen Withdrawals For Some Customers, Here’s Why

Celsius has been in the thick of bankruptcy proceedings for about two months now. There have been various revelations about the company’s financials and how it viewed various subsets of its customers. These views are made even more obvious in a filing that was published on Thursday stating that the crypto lender wants to reopen withdrawals for Custody and Withhold Account holders.

Only Some Celsius Users Are Eligible

In the filing, Celsius made the argument that it needs to reopen withdrawals for some of its customers. However, these withdrawals would be limited to only those who operated Custody and Withhold accounts. The now-defunct crypto lending platform said that these users were the owners of their cryptocurrencies due to the structure of the accounts and, as such, should be eligible to get back the cryptocurrencies they deposited on the platform.

It further went on to address why Earn and Borrow users should not be able to withdraw their assets. Bitcoinist had previously reported that Celsius Network did not believe that users who operated such accounts had any right to their crypto, and it makes the same argument once more, saying that these digital assets “are likely property of their estates.”

Furthermore, the filing explains that Celsius does not believe that some of these assets held by users in the Custody Program or the Withhold Account belong to it because these users had never utilized Earn or Borrow accounts for their cryptocurrencies.

“The customers transferred cryptocurrency assets into the Custody Program or Withhold Account from an external wallet but never transferred such property to or from the Earn Program or the Borrow Program,” the filing reads. “Accordingly, the Debtors believe that such transferred assets were never property of the Debtors… and could not be subject to a preference action.”

The filing shows that Celsius has a total of 5,000 users with around $15 million worth of Withhold assets and 58,300 users with about $210 million worth of Custody assets stuck on the platform.

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