Court Orders Celsius To Process Customer Withdrawals And Airdrop Flare Token admin January 30, 2022

Court Orders Celsius To Process Customer Withdrawals And Airdrop Flare Token

airdropBankruptcyBusiness and FinanceCelsius NetworkFlare Network

  • Celsius will process the withdrawals of certain customers following authorization by the bankruptcy court. 
  • A second court order authorized a Flare token airdrop to eligible XRP holders on the platform. 
  • The firm’s lawyers have floated the idea of issuing a new token to repay its customers. 
  • The native token CEL and Flare have lost more than 7% of their value since the court orders came out. 

In a recent court hearing, a bankruptcy judge authorized Celsius to process the withdrawal requests of certain customers. The court order comes as a relief to the bankrupt crypto lender’s customers who have been waiting since July 2022 to access their funds. 

Celsius to return funds and airdrop Flare 

According to the court order, Celsius has been authorized to return the cryptocurrency that its customers had deposited before it filed for bankruptcy last year. Customers will be able to withdraw their funds “net of any gas fees or transaction costs in order to effectuate the withdrawal or transfer of digital assets”. However, all withdrawals would have to be in the form of crypto, no fiat withdrawals will be permitted. 

Judge Martin Glenn also signed a second order, which authorized the bankrupt crypto lender to airdrop Flare tokens to eligible account holders i.e, customers who held at least 1 XRP during the XRP snapshot. The snapshot was taken in December 2020 and qualifies the holders to receive 1 FLR for every XRP in their account. 

Lawyers representing Celsius floated the idea of issuing a new crypto token to repay the firm’s creditors. The new token was part of a broader plan to restructure the company as a publicly traded “recovery corporation”. Per this plan, creditors would receive Asset Share Tokens (AST) that reflect the value of their assets. The plan is yet to be approved. 

The tokens associated with Celsius and the court hearing have taken a considerable hit. Since the court orders went public, the native token CEL has lost more than 7% of its value. Meanwhile, the price of Flare (FLR) has gone down 8%. 

Source : Ethereum World News

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