Who's Eligible to Get Their Crypto Back From Bankrupt Celsius?

Celsius announced that it will start letting "eligible users" withdraw their funds from the bankrupt crypto lender. But who qualifies?

By Liam J. Kelly

2 min read

Celsius users rejoice. Well, some of them, anyway.

Today, the now-bankrupt crypto lender announced that certain "eligible users" can expect to withdraw their funds soon.

A court filing indicates that "on or around February 15, 2023" this batch of users will be notified of their eligibility as well as begin the process to withdraw their funds. This process involves updating users' addresses and providing information as per KYC and AML regulations.

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

But what constitutes an "eligible user?"

Well, says Celsius, it's complicated and hinges on several key conditions revolving around which accounts a user held funds, for how long, and at what amounts.

Let's break it down.

Defining an 'eligible' Celsius user

Back in December, the bankruptcy court judge ordered that Celsius return roughly $44 million in unnamed cryptocurrencies.

Users who held their funds in Celsius' "custody program" or in "withhold accounts" could get 94% of their money back if those funds "were only ever in" the custody program or were moved to the custody program from interest-earning or borrow accounts in the 90 days prior to the petition, and their value was less than $7,575.

Other eligible users include those that sent unsupported crypto to Celsius, but which are also in the debtor's possession.

If a user checks all those boxes, they're eligible for 94% of whatever's left in their account.

Some users may very well fall into this category, but the filing also indicates that users must account for any transaction and gas fees for their withdrawals. Should those fees be higher than the holdings in the eligible account, they won't be getting their money back.

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

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