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After 263 days, Celsius lifts the cap on account withdrawals, with a maximum withdrawal limit of $7,575.

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After 263 days, Celsius lifts the cap on account withdrawals, with a maximum withdrawal limit of $7,575.

After 263 days, Celsius has been ordered by a judge to open withdrawals from custodial accounts. However, this only represents a small portion of Celsius's total debt of up to $5.5 billion. Previously, the court ruled that the funds used by most users on the platform's earning product, Earn, belong to Celsius.

According to an announcement on Celsius's Twitter, the platform began allowing withdrawals for users with assets in custodial accounts on March 2nd. However, withdrawal eligibility for users is divided into two categories:

Table of Contents

1. Assets in Pure Custody Accounts: Unlimited Withdrawals

This refers to users' encrypted assets that have never been involved or transferred to Earn or Borrow accounts, only stored in custody accounts. Users of this type have no withdrawal limit.

2. Assets Transferred to Custody Accounts: Limit of $7,575

If within 90 days before Celsius declared bankruptcy on July 13 last year, encrypted assets were transferred from Earn or Borrow to custody accounts, according to Section 547 of the Bankruptcy Law, the withdrawal limit for users is $7,575.

In addition, the following users are not allowed to withdraw:

  • Current and former employees of Celsius, its subsidiaries, and internal personnel.

  • Users with outstanding loans not cleared by December 20, 2022.

  • Users with insufficient withdrawal fees.

Earlier reports indicated that a bankruptcy judge ruled that Celsius must return $44 million from non-interest-bearing accounts in custody accounts to users. According to legal documents, Celsius is authorized to distribute 94% of the custody assets to eligible users. If a settlement is approved by the court later on, Celsius will distribute the remaining 6% separately.

However, this amount is only a drop in the bucket compared to Celsius's total debt of up to $5.5 billion, and previously, the judge awarded Celsius ownership of the funds from the Earn product amounting to $4 billion in accordance with the "User Terms."

According to the Terms of Use (TOUs), token ownership has been transferred to Celsius, and Celsius has the right to use, sell, pledge, and re-pledge these tokens.