The names of users who are eligible to withdraw most of their assets on the platform were released by the company Celsius CEL USD, which filed for Chapter 11 bankruptcy protection last July.
The 1,400-inch document, filed with a New York bankruptcy court, shows that the company has received permission to distribute 94% of each user's assets, subject to certain conditions.
The transfers must have sufficient assets to cover any withdrawal fees and update their anti-money laundering and know-your customer information, as well as the conditions that the transfer was less than $7,575 when made.
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The Court will determine if and when Eligible Users will be entitled to a distribution of the remaining 6%. On or around February 15, eligible customers will receive an email with instructions on how to process the transfers.
A report filed in the U.S. Bankruptcy Court for the Southern District of New York on Tuesday by independent examiner Shoba Pillay said that Celsius did not have proper asset and liability tracking and tried to cover up false statements made publicly by Chief Executive Officer Alex Mashinsky.
The company was struggling with a crunch and employees referred to it as a sinking ship despite presenting an optimistic financial picture to its customers. A report also revealed that Celsius didn't reveal information on purchases of its token CEL and used customer assets as collateral for loans to cover holes in its balance sheet.
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