Custodial-Account Holders at Celsius Has Formally Asked Court to Authorize the Return of Their Funds

Custodial-account holders at Celsius has formally asked the court to authorize the return of their funds. The ad hoc group petitioned the New York Bankruptcy Court for the Southern District of New York on Wednesday for a declaratory judgment to require Celsius to allow withdrawals from the custodial accounts. Celsius filed for bankruptcy proceedings in July after freezing withdrawals in mid-June. The company is hoping to restructure its operations and use revenue generated from a still-being-built mining operation to survive. The group is composed of 64 people who hold at least $22.5 million in cryptocurrencies with Celsius’s custody service, according to the filing. It is separate from the Unofficial Committee of Creditors (UCC), another organized set of Celsius customers.