Canadian pension fund giant cancels bet on Celsius (CEL)

Celsius is a CeFi (centralized finance) entity allowing its customers to leverage the benefits of DeFi (decentralized finance) protocols. Before going bankrupt, Celsius was a large cryptocurrency lending company. In June, the company suspended customer withdrawals. The following month, it revealed that there is a $1.2 billion hole in its balance sheet. With customers reclaiming their holdings, the company recently said it would return only a small portion of the funds. But the situation changed very quickly! Here are the latest developments in the Celsius affair.

Celsius: Return $48 million or $200 million?

1er September, it was revealed that Celsius Network agreed to return 22% assets of its users. This percentage represents approximately $48 million. Still, the platform had blocked about $200 million in user funds. However, a few hours ago, we learned that Celsius would like to unlock 225 million dollars customer funds. Indeed, the company filed a motion this Friday morning with the courts for authorization to carry out this operation.

Weeks earlier, Celsius had claimed that client funds stored in its custody program belonged to it. According to him, the same is true for his retainer accounts. But today, the platform declares that these various funds do not technically belong to it. That said, as of August 29, Celsius’ holdback accounts held $15 million. Meanwhile, the custody program had in its possession approximately $210 million in funds.

Bankrupt cryptocurrency lending platform Celsius may soon return $225 million to its customers. Bankruptcy Court for the Southern District of New York has scheduled a hearing for October 6 to discuss the matter.

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