Crypto lender Celsius Network will allow withdrawals from some of its customers, potentially returning $210 million to users who were locked out of their accounts this summer.
Celsius paused customer withdrawals in June, claiming it had been slammed by the massive crypto sell-off. It later attempted to resume withdrawals by raising money through a high-yield token, but eventually filed for bankruptcy in July.
But a new court filing said the lender will reopen withdrawals for customers who have custodial and withhold accounts, CoinDesk reported, noting about 58,300 users deposited over $210 million in those accounts.
That came a day after 64 custodial customers filed a petition against the crypto lender demanding their funds be returned to them, adding that Celsius had the ability to do so, but have avoided that for months.
“The Debtors’ continued refusal to honor withdrawals of all Custody Assets has created tremendous hardship on their users as set forth in hundreds of letters filed on the docket and at hearings,” the petition said, referring to letters sent to the Southern District of New York from Celsius customers. Many of them have expressed anger at being locked out of their accounts, and have pleaded to get their deposits back.
Celsius owed $4.7 billion when it filed for bankruptcy. According to court filings, Celsius said the total value of its assets were only worth around $4.3 billion at the time it declared bankruptcy, around $17 billion less than what it reported in March of this year.
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