Celsius to receive $70 million as per latest filing; liquidation may still be on the cards
Court filings made by Kirklan & Ellis LLP, the law firm representing Celsius, revealed that the bankrupt crypto lender is expecting an influx of cash in the first week of October.
According to the filing, Celsius is set to receive almost $70 million, on account of their USD denominated loans maturing next month. The detail was only recently discovered and until now was believed to be loans in dollar-pegged stablecoins.
Source: Celsius Network
Celsius expects to fund its operations till the end of this year using the loan repayment.
In a series of tweets, Celsius informed its users that it filed a separate motion. This motion was to seek permission for the reopening of withdrawals for ‘specific custody and withhold accounts’. The twitter thread clarified that withdrawals will only be made available to accounts that do not have outstanding loans.
Ironically, the earn accounts, advertised as safe and secure, are not eligible for withdrawal as per Celsius’ filing. Furthermore, Celsius intends to release about $50 million of the $210 million in custody accounts. The stark difference is due to the fact that only ‘pure’ custody accounts are eligible for withdrawals.
Users criticized the lender for limiting withdrawals to those who had custody and withhold accounts. Customers with the regular earn accounts did not welcome this move.
Some users claimed that the accounts that brought in the most revenue for Celsius (non-custodial) should have been considered for the proposed withdrawal facility. A hearing has been scheduled for 6 October to hear proposals from custody account holders.
Legal experts David Adler and Simon Dixon were present in the courtroom during Celsius’ hearing on 1 September. They noted that there is a possibility
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