It has now been more than one year since crypto lender Celsius Network filed for bankruptcy, leading to a rollercoaster 13 months for investors so far. However, there may finally be an end in sight for users who have their funds stuck on the platform as it looks like Celsius is getting ready for fund distribution.
Celsius Network Asks Investors To Update Information
In an email that was sent out on Thursday, August 24, Celsius Network has requested that users update their Know Your Customer (KYC) information on the app. The reason for this, the company said, was to prepare for when the court approved the distribution of the assets that it has been able to recover in the course of its bankruptcy proceedings in the last year.
The KYC re-verification requires users with valid claims to submit their government identity cards (IDs) as well as update their personal information on the app if and where necessary. This is likely an attempt to verify the claims and validity of all users before distributing the funds.
Additionally, the email encourages users to set up two-factor authorizations for their accounts. This comes after months of various complaints from Celsius users about phishing scams trying to steal user information and access their accounts.
In closing, Celsius advised users that the changes can take a while to be updated in the app. “It may take some time for these changes to be reflected in your account prior to any withdrawals being processed,” the email read. However, some users have taken X (formerly Twitter) to reveal that the update only took them a few minutes to complete.
The new KYC process also seems to be focused on non-US users. As for US-based users, Celsians Network, an X account dedicated to following the Celsius bankruptcy progress, revealed that they “will be KYC’ed by their distribution partner (PayPal).”
What Percentage Can Users Recoup?
According to a filing made by Celsius last week, users could be looking to recoup up to 85% of their holdings currently stuck on the platform. The disclosure statement which was submitted to the US Bankruptcy Court in Manhattan has asked the court to approve the sale of the crypto lender to the Fahrenheit Group.
So far, this plan has been the one carrying the highest possible payouts from Earn and Borrow users, most of which have been dragged along with the bankruptcy proceedings.
The crypto lender has said that creditors will be given around one month, from August 24 to September 22, to vote for or against selling the assets.
Following its bankruptcy filing in 2022, it was revealed that Celsius owes creditors around $4.7 billion in total. However, the total value of its assets and holdings is nowhere near this amount.