Who is eligible to recover their crypto from bankrupt Celsius?

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Celsius users rejoice. Well, some of them anyway.

Today, the now bankrupt crypto lender announced that some “eligible users” can expect to withdraw their funds soon.

A court filing indicates that “on or about February 15, 2023” this group of users will be notified of their eligibility and begin the process of withdrawing their funds. This process involves updating user addresses and providing information in accordance with KYC and AML regulations.

Crucially, these users will also only be able to withdraw 94% of their trapped crypto.

Eligible users can expect to receive emails and communications on the Celsius app from Celsius on or about February 15 notifying them of their eligibility.

Celsius (@CelsiusNetwork) February 1, 2023

But what constitutes an “eligible user?”

Well, says Celsius, it’s complicated and depends on several key conditions regarding which accounts a user holds funds in, for how long, and in what amount.

Let’s break it down.

Definition of an “eligible” Celsius user

In December, the bankruptcy court judge ordered Celsius to return approximately $44 million in unnamed cryptocurrencies.

Users who held their funds in Celsius’ “custody program” or “holding accounts” could get 94% of their money back if those funds were “only in” the custody program or transferred to the custodial program. custody from interest or borrow accounts within 90 days of the petition, and their value was less than $7,575.

Other eligible users include those who have sent unsupported crypto to Celsius, but are also in the debtor’s possession.

If a user ticks all of these boxes, they are entitled to 94% of what is left in their account.

Some users may very well fall into this category, but the record also indicates that users must consider all transaction and gas fees for their withdrawals. If these fees are greater than the assets of the eligible account, they will not be refunded.

And, finally, the bankruptcy court will determine a later date when Celsius can distribute the remaining 6% to users.

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