Celsius, the beleaguered cryptocurrency lending platform, has recently advanced its efforts to manage the fallout from its bankruptcy proceedings by enabling additional customer withdrawals. This move comes as a response to certain eligible custody users, who have been given a green light to access some of their holdings.
Specifically, commencing November 29th, users categorized under Class 6A General Custody Claims and Class 6B withdrawable custody claims have the opportunity to retrieve funds. They are permitted to reclaim 72.5% of their crypto holdings, less any transaction fees incurred. The catch, however, is that such users must not have availed themselves of any prior custody settlement. This window to initiate withdrawals extends until February 28th, a deadline all-classified users must heed.
Trouble, unfortunately, doesn’t seem to subside for Celsius clientele. With the company instructing users to promptly move their assets out of its application system, the challenge has been compounded by technical glitches. Customer outcries reveal that numerous attempts to log in, even after reinstalling the Celsius app, have been met with frustration and failure. Reports suggest that the app, deemed to have a limited lifespan in its current functionality, presents empty Earn accounts to users upon access, culminating in their distress and confusion.
While grappling with these operational hurdles, Celsius has also been charting a new course for its future. The company has received sanction from the bankruptcy court to metamorphose into a creditor-owned entity, pivoting towards Bitcoin mining to rebalance its books. With a promise of repaying customers using a mixture of crypto assets and shares in the nascent, yet-to-be-listed mining firm, the stage is set for 2024. Nonetheless, the looming shadow of liquidation persists should this rehabilitation plan fall through the cracks.
Legal woes continue to dog Celsius and its CEO, Alex Mashinsky, for allegedly deploying deceptive trade practices. A mishmash of legal proceedings by the SEC, FTC, and CFTC has encircled the company, leading to substantial settlements and pending trials. Amidst these tumultuous tides, Celsius has agreed to a colossal $4.7 billion settlement with the FTC, contingent on the wrap-up of bankruptcy developments. As Mashinsky stares down the barrel of a fraud trial, the restitution prospects for users are mired in ambiguity, along with unresolved application issues and zero-balance displays.
On the market front, the native token of Celsius, CEL, exhibited a modest uptick, marking a 5% improvement over 24 hours, albeit this surge barely scratching the surface of its prior year depreciation, with it being down over 50% year-to-date. Discrete transactions continue to navigate through the CEL’s fluctuations as investors and customers alike brace for the long-term verdict on Celsius’ strategic redirection and potential recovery.