It’s been over a year since cryptocurrency lending firm Celsius Network filed for bankruptcy, and it’s been a rollercoaster 13 months for investors so far. However, for those users whose funds are trapped on the platform, the end may finally be seen, as Celsius appears to be gearing up for the distribution of funds.
Celsius Network asks investors to update information
In an email sent on Thursday, August 24, Celsius Network asked users to update their know-your-customer (KYC) information on the app. The reason for doing so, the company said, is to prepare for court approval to distribute assets recovered in last year’s bankruptcy proceedings.
KYC re-verification requires users with a valid claim to submit their government identification (ID) and, if necessary, update their personal information on the app. This may be to verify the claims and validity of all users before distributing funds.
Celsius asks users to update KYC information
Additionally, the email encourages users to set up two-factor authorization for their accounts. Celsius users have been complaining for months about phishing scams trying to steal user information and access their accounts.
Finally, Celsius advises users that it may take some time for these changes to update in the app.”It may take some time for these changes to be reflected in your account before any withdrawals are processed,” the email reads. However, some users have reached out to X (formerly Twitter) via X (formerly Twitter). reveal It only took them a few minutes to complete the update.
The new KYC process also appears to be focused on non-US users. For US users, Selcy Networkan X account dedicated to tracking the progress of Celsius’ bankruptcy, revealed that they “will be KYCed by their distribution partner (PayPal).”
What percentage can users get back?
According to a filing by Celsius last week, users may want to recover 85% of assets currently stranded on the platform. A disclosure statement filed with the U.S. Bankruptcy Court in Manhattan asks the court to approve the sale of the cryptocurrency lender to the Fahrenheit Group.
The scheme is by far the one earning and lending users the most payments, most of which have been dragged out with bankruptcy proceedings.
Creditors will have about a month (from Aug. 24 to Sept. 22) to vote for or against the asset sale, the cryptocurrency lender said.
After filing for bankruptcy in 2022, it was revealed that Celsius owed creditors a total of about $4.7 billion. However, the total value of its assets and holdings is nowhere near that figure.
CEL token price drops to $0.12 as users wait | Source: CELUSDC on Tradingview.com
