The United States Bankruptcy Court for the Southern District of New York has specified the process through which customers of the defunct crypto lending platform Celsius can retrieve their cryptocurrency assets.
“Holders will be asked to update their Celsius account with certain required information to process withdrawals, including specific customer data related to Anti-Money Laundering (AML),” the filing declared.
Process Outlined for Celsius Customers
As per the court filing, customers will incur the cost of deducting the transaction expenses associated with sending crypto assets to them.
Meanwhile, it was noted that the withdrawal fees will be charged on a “per withdrawal” basis based on the withdrawal fees set out by the debtors.
Initial Withdrawal Fees Associated With Each Crypto. Source: Stretto
Additionally, it emphasized the importance of customers updating their accounts with the necessary information. Failure to comply with the AML regulations will render account holders unable to access their assets.
Read more: DeFi Lending Explained: What Are DeFi Loans?
Celsius Liquidation Plan In Recent Times
However, there have been several developments in the Celsius bankruptcy proceedings in recent times.
On July 17, Celsius started liquidating over $24 million of altcoins. These include Chainlink (LINK), Synthetix Network (SNX), BNB coin, 1inch, and 0x Protocol (ZRX), among others.
Furthermore, the largest liquidated among the group of altcoins was LINK with approximately $8.5 million.
In more recent news, Celsius is reportedly facing struggles in its attempt to turn into a Bitcoin mining business.
A report recently stated that it reduced its post-bankruptcy business plans to focus only on Bitcoin mining.
However, the SEC is reportedly hindering specific staking and lending activities, creating challenges for conducting business operations.
Read more: Top 5 DeFi Lending Platforms
Disclaimer
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