Introduction
Celsius Network, a cryptocurrency lending and borrowing platform, has received court approval to allow eligible users to withdraw all distributable custody assets. This move comes after a legal battle with a former employee who claimed that Celsius was operating as an unregistered securities dealer.
Background
In 2020, a former Celsius employee filed a lawsuit against the company, alleging that it was operating as an unregistered securities dealer. The lawsuit claimed that Celsius was offering unregistered securities to its customers, which violated U.S. securities laws. Celsius denied the allegations and filed a motion to dismiss the case.
In March 2021, the court denied Celsius’ motion to dismiss the case, allowing the lawsuit to proceed. However, the court also granted Celsius’ motion to allow eligible users to withdraw all distributable custody assets.
Related:FTX Bankruptcy Judge Approves Sale of LedgerX
Eligibility for Withdrawal
According to Celsius, eligible users are those who have completed the KYC (Know Your Customer) process and have passed all compliance checks. These users can now withdraw all distributable custody assets, including cryptocurrencies and stablecoins.
Impact on Celsius
The court’s decision to allow eligible users to withdraw all distributable custody assets is a significant win for Celsius. It shows that the company is committed to complying with U.S. securities laws and is willing to work with regulators to ensure that its platform is operating legally.
Conclusion
Celsius Network users who are eligible can now withdraw all distributable custody assets following court approval. This move is a significant win for Celsius and shows its commitment to complying with U.S. securities laws.
