It was on July 13 when the entire cryptocurrency industry was in a state of shock when Celsius Network Ltd. announced it was filing bankruptcy.
The reports confirmed that on the same day, the Celsius Network filed for Chapter 11 bankruptcy protection.
Celsius Network to Release $50 Million
The situation kept getting worse for the Celsius Network after filing for bankruptcy. It was revealed that the cryptocurrency lending giant had a balance of over $2.5 billion that it owed to investors and other lenders.
Almost every week, something new had been coming up against the Celsius Network. Every time, it was something to do with the company’s financial crisis, which had the entire Celsius Network community worried.
The Celsius Network has announced that it is set to release $50 million worth of cryptocurrency assets that it owed to the Celsius account holders.
The Celsius Network has confirmed that the partial withdrawals enabled are for the users who held the Celsius custody account.
The teams at Celsius reasoned that because the custody account holders had no participation in the borrow and earning program, they will get their funds back.
It is expected that on October 6, a hearing will take place at the court and it will be pertaining to the same matter.
The court is Aware of the Matter
As the Celsius Network has filed for bankruptcy, therefore, it is important for the lending firm to ensure it keeps the court in the loop for any legal proceedings and record keeping.
The court is aware that the Celsius Network is in the process of releasing $50 million worth of funds that were held in the form of cryptocurrencies.
Only the above-mentioned consumers will be able to reopen their custody accounts and then request withdrawals. The Celsius Network has confirmed that the accounts are specifically the withhold and custody program accounts.
Celsius Network Halted Multiple Services
Although the Celsius Network filed for bankruptcy back in July, it had halted all the services for the clients a month earlier.
On June 12, the Celsius Network announced that it had halted multiple services for the customers. These services included transfers between accounts, swaps, and withdrawals.
Bankruptcy Process is a Test of Patience
For the investors and lenders, the Celsius Network’s bankruptcy process has proven to be a test for patients. The process is very extensive and the investors have been writing letters to the court demanding their rightful funds.
As the Celsius Network announced the withdrawal facility for the investors, CEL recorded a significant jump in trading prices.
The investors rallied to support the digital asset in the latest trading sessions and the value of CEL recorded a 50% surge in a matter of 24 hours.