Empty Accounts Discovered As Celsius Allows Crypto Withdrawals For Eligible Users
November 29 2023 - 7:30PM
NEWSBTC
In a recent announcement, bankrupt crypto lender Celsius has
initiated additional withdrawals for certain eligible custody
users. However, it’s important to note that only specific custody
assets are currently available for withdrawal, while other
cryptocurrencies such as Bitcoin (BTC) remain inaccessible.
Starting November 29th, two groups, namely Class 6A General Custody
Claims and Class 6B withdrawable custody claims, are eligible for
withdrawals. Users within these groups have until February 28th to
make their withdrawals. Qualifying users can withdraw 72.5%
of their crypto, minus transaction fees, provided they did not
participate in a previous custody settlement. Withdrawal Woes
For Celsius Users In the November 29 announcement, Celsius urged
users to withdraw these assets from the Celsius app immediately and
to keep personal records of relevant information, as the app will
only be accessible for a limited time. However, despite the
withdrawal option, some Celsius users have experienced
difficulties, according to reports on the X platform. This
development comes as some 58,300 users hold approximately $210
million worth of assets that have been deemed “custodial assets” by
the court. Related Reading: A Golden Opportunity For Ethereum? 600%
Buy Signal Returns According to user responses to the Celsius
announcement, there have been reports of login failures on the
platform. Users claim to be experiencing errors even after
attempting to reinstall the Celsius app. Additionally, some
users have expressed concern that their Earn accounts are empty,
further exacerbating the issues faced by former users of the crypto
lending platform. One user specifically stated: While my
frozen portfolio balance is visible, my custody balance shows 0.
Transition To ‘Creditor-Owned’ Bitcoin Mining Company As reported
by our sister website, Bitcoinist Celsius recently obtained
approval from the bankruptcy court for its proposal to transition
into a creditor-owned Bitcoin mining company. This plan
involves repaying customers through a combination of crypto assets
and stock in the newly established Bitcoin mining firm, which will
be publicly listed. The distribution of assets is expected to
commence in early 2024, pending endorsement from the US Securities
and Exchange Commission (SEC). However, Celsius acknowledges
the possibility of liquidation if the crypto-mining proposal fails
to materialize. Related Reading: Chainlink Signal Resurfaces: Is
Another 31% Rally Coming? Celsius and its founder and CEO, Alex
Mashinsky, have faced legal action from various entities, including
the SEC, Federal Trade Commission (FTC), and the Commodity Futures
Trading Commission (CFTC), for alleged misleading practices.
Celsius promptly settled with the FTC, agreeing to pay $4.7 billion
once the bankruptcy proceedings concluded. Mashinsky has been
charged with fraud; his criminal trial is scheduled this
year. Overall, the resolution of the reported issues faced by
Celsius users remains uncertain, including the login difficulties
and accounts displaying zero balances. It is yet to be
determined whether these occurrences are temporary or persistent
and how the platform intends to address them. The future actions
and measures Celsius took to rectify these concerns are still to be
clarified. The lender’s native token, CEL, is trading at $0.2533,
up 5% in the past 24 hours. However, it is important to note that
the token has yet to recover from its 2022 decline and remains down
more than 50% year-to-date. Featured image from Shutterstock, chart
from TradingView.com
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