The Celsius Network wants to allow customers to be able to withdraw their digital assets in certain accounts and has filed a motion in the US Bankruptcy Court. But this will only apply to Custody and Withold Accounts and for custody assets worth $7,575 or less in value.
The Custody and Withold Accounts also serve as storage wallets. It enables users to maintain legal ownership of cryptocurrency. But this ownership is not extended to assets held in accounts that offer annual crypto earnings or borrowing services. Some creditors are happy that the beleaguered crypto lender has conceded funds held in its Custody Program and Withold Accounts likely do constitute property of their estates.
Simon Dixon, the CEO of BnkToTheFuture.com, believes the amount Celsius wants to release is far short of what is equitable. He tweeted that custody is $210 million and they want to release only $50 million. Dixon said the firm believes all earn funds belong to Celsius. The $7,575 is the statutory cap and Celsius is unable to avoid transferring amounts less than this. It should be noted that an additional $15.33 million is held in Withold Accounts by approximately 5,000 customers.
Celsius lawyers, to attain the $50 million figure, distinguished between Pure Custody/Withold Assets and Transferred Custody/Withold Assets with Pure assets which were not transferred from the Earn or Borrow Programs. Many members want nothing short of all their funds back.