Home Crypto News News Celsius Gives Users 90 Days Before App Shutdown

Celsius Gives Users 90 Days Before App Shutdown

Omar Elorfaly
Last Updated August 23, 2023 12:10 PM

Key Takeaways

  • Celsius will shut down its app in 90 days
  • The company is preparing for the launch of NewCo.
  • Celsius customers have 90 days to withdraw their tokens from the platform

In July, Celsius, the insolvent crypto lending platform, announced its distribution plan, aiming to refund its creditors. Simultaneously, company directors announced the formation of NewCo., a reformat for the business whose shares will be part of the refund scheme.

This week, the company announced that it would be shutting down  its app within 90 days. Accordingly, users will be allowed to use the app in the meantime to withdraw their digital assets.

The End Of Celsius

The removal of the Celsius app coincides with the company’s plan to end its run its operations in its current form. NewCo., the company’s new identity, was created after Fahrenheit won the bid to take over the company, 

Now, Celsius’ app will be shutting down within 90 days as part of the company’s overall direction to simplify its operations, optimize distribution auto mechanics, and also boost the total customer experience.

Celsius told CCN “We’re happy to have resolved matters with the DOJ,SEC,CFTC and FTC. As we work towards a successful chapter 11 plan,Customers are encouraged to check their eligibility and submit withdrawals.”

The company’s official Twitter account also added “Eligible Users with assets in earn can withdraw a percentage of their assets,” also that “Eligible Users are being notified of the steps needed to facilitate their withdrawals. Last week [first week of August], the Debtors and the UCC filed a joint motion to approve a settlement of the class claim. Kindly leave a message below on how to opt in.”

Customer Refunds

Celsius had filed for Chapter 11 bankruptcy with the US Bankruptcy Court. As a result, the company was ordered to partially refund a certain portion of its customers. These refunds were only aimed at Holder customers who simply saved their tokens on the platform with no intention to for financial investment.

On the other hand, Earn accounts, customers who used Celsius to make gains on their crypto deposits were left out to dry following the court’s order.

Later on, the company announced its revised distribution plan where it declared its intentions to refund its Earn customers, again, partially.

The distribution plan detailed the company’s intended payment scheme which includes liquid crypto refunds, refunds on litigation fees, and shares of NewCo.

“This is the right decision for our community and company,” said Alex Mashinsky, company CEO, adding that “We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.”

Now that the company is shutting down its app, asking customers to withdraw what’s left of their tokens on the platform, and creating a new company (albeit with the same directors), Celsius will soon cease to exist in its current form.