It has been almost a year since crypto firm Celsius went bankrupt. Since then, a number of its users have not been reimbursed. Or at least, were only able to recover part of their assets. The situation has changed since they can now recover the rest of their funds.
Refund only open to eligible users
As per the bankruptcy judge’s order, crypto lending platform Celsius will fully refund some of its users. The information is made public by the company itself, Thursday, May 4.
It should be noted that only users deemed eligible are affected by This measure. The latter targets those who only hold their assets in deposit accounts, and who have only accessed 94% of their funds.
The new measure means that users will be able, with the application of the latter, to withdraw all of their assets from the platform. No doubt then, Celsius users affected by the decision will be able to sigh in relief.
The challenges ahead for Celsius and its users
It was indeed not won in advance, given the financial and legal context of Celsius for several almost a year. As a reminder, the company had filed for bankruptcy in June 2022. This, after freezing withdrawal operations on its platform.
Nothing therefore predicted that the users, thus satisfied, could again take possession of their assets. Because, as we know, the situation of the crypto market is such that in the event of a crash, users are often the biggest losers.
Reimbursing them is never an easy task. Moreover, that in favor of some of the depositors is only a slight step forward for the company. The vast majority of users are still waiting to be reimbursed. The question of when these could recover their funds persists.
For now, Alex Mashinsky, the company’s ex-CEO, must face justice. In January, the latter was the subject of a legal action brought by the Attorney General of New York. A legal proceeding which he recently contested because, according to him, it “returns incorrect information”. In any case, the acquisition of Celsius could save the furniture.
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