Celsius Answers Users’ Questions: Here’s All You Need To Know
- Celsius answered questions from the users of its platform via updated FAQs
- The firm plans to “emerge as a stronger company”
In an updated FAQ blog from crypto lender Celsius Network, the firm covered a number of queries related to the grievances of its users as it continues to restrict withdrawals on the platform. The firm has already filed for Chapter 11 bankruptcy and it seems, via this blog post, the troubled firm tried to reaffirm customers’ faith in the lender.
Celsius first confirmed the initiation of a financial restructuring process to provide the crypto lender with the best opportunity to stabilize its business and “consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.” The firm publicly announced that it has filed for Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.
“Celsius initiated a financial restructuring to stabilize the business and maximize value for all stakeholders. Acting in the best interest of our stakeholders, including our entire customer community, is our top priority,”
said the firm.
The firm confirmed that it will aim to emerge as a stronger company after the restruturing process is complete. However, the major question that the users wanted answered is when will they be able of access their funds.
The firm had halted withdrawals on June 12th following extreme volatile situation and a liquidity crisis on the platform.
Celsius answers questions
Here are the following important points from the Celsius FAQ:
- Celsius will not allow customer withdrawals in the near future. “Most account activity will be paused until further notice,” the crypto lender said.
- Additionally, the customers will not be receiving rewards either as reward accruals are paused
- However, existing loans initiated by Celsius affiliates will continue to be serviced. “Maturity dates, margin calls, and interest payments will continue as they have in the past,” said Celsius.
- The firm added that vendor payments going forward will “depend on when goods or services were provided to Celsius.” The goods and services provided after July 13 will be considered “post-petition” and will be paid in the normal course.
- The goods and services provided before July 13 will be considered “pre-petition” and will not be paid without the court’s approval.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
