In a new court filing, Celsius lawyers said they wanted to unlock $50 million in crypto that shouldn't form part of the bankruptcy proceedings.
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Some Celsius Network users may soon be allowed to start withdrawing cryptocurrency from their accounts — but there's a catch.
The relaxed rule would only apply to customers who were part of the custody program, meaning they stored digital assets with the company but didn't earn any interest.
In a new court filing, Celsius lawyers said they wanted to unlock $50 million in crypto that shouldn't form part of the bankruptcy proceedings.
While this is a move in the right direction, there's much more work to be done. A total of $210 million is owed to users through the custody program — and $4.3 billion in the earn program.
Celsius Network has described its new proposal as "fair and appropriate," and a hearing is due to be held on Oct. 6. It added:
"The debtors recognize that the relief sought in this motion may not be supported by every customer or stakeholder, and that it may not go as far as some custody program customers and withhold account holders may wish. This motion is a first step toward, and not the last word on, efforts to return assets to customers where possible without jeopardizing the debtors' efforts to maximize value and distribute that value to all customers as fairly as possible."
Earlier this week, some custody users who have been stopped from making withdrawals claimed that the policy has caused them "tremendous hardship."
In an official complaint, they pointed to the company's Terms of Use, which say that the "title to custody assets always remains with the user."
Estimates suggest that 58,000 users were using the custody service before withdrawals were abruptly halted.
