Beleaguered digital asset lender Celsius Network has filed a motion with the U.S. Bankruptcy Court recently to permit customers with virtual currencies held in certain accounts to be withdrawn.
Nevertheless, there’s a catch, as the motion will only apply to Custody and Withhold Accounts and for under-custody assets worth 7,575 USD or less in value.
Celsius has structured their Custody and Withhold Accounts, which essentially serve as crypto storage wallets. In a way, that still enables users to maintain legal ownership of virtual assets.
Nevertheless, this ownership is not extended to assets held in accounts that offer annual virtual currency earnings or crypto borrowing services (Earn and Borrow accounts).
Notably, the community response to the motion has been mixed, with creditors happy that Celsius Network has turned over funds held in its Custody Program and Withhold Accounts which probably constitute property of their estates.
Nevertheless, as tweeted by BnkToTheFuture.com CEO Simon Dixon, the community is of the opinion that the amount Celsius wants to release is far short of what is equitable. A hearing on the motion is scheduled to be held on 6th October, and as it stands, users have had their crypto assets locked up on the platform for over 2 months.
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