The troubled crypto lender Celsius Network has reportedly submitted the filing of a motion with the US Bankruptcy Court to make it possible for its clients with crypto assets held in certain accounts to be withdrawn. 

Specifically, the motion particularly asked for perssmission that will be applicable exclusively to Custody and Withold Accounts and for custodied assets equivalent to $7,575 or less in value.

Celsius has reportedly finalized the structuring of their Custody and Withhold Accounts, which essentially operate as storage wallets, in a sense that still makes it possible for users to maintain legal ownership of cryptocurrency.

Nonetheless, the scope of this ownership will reportedly not be widened to cover assets kept in accounts that offer annual crypto earnings or borrowing services (Earn and Borrow accounts).

The feedback from the community regarding the motion has been mixed, with creditors expressing a happy attitude that Celsius Network has conceded funds held in its “Custody Program and Withhold Accounts likely do constitute property of their estates.”

However, as revealed via a tweet by BnkToTheFuture.com CEO Simon Dixon – the community shares a belief that the amount Celsius wants to release is far short of what is equitable.

Per Dixon points out, around $50 million of the $210 million held by 58,300 users in custody accounts has a release schedule, with all funds over the $7,575 benchmark which were moved from the Earn Program and Borrow Program into Custody and Withhold accounts not included within the released amount.

The $7,575 amount is referred to as the “statutory cap” and Celsius does not have the ability to steer clear from moving amounts under this total upon creditor requests as per section 547(c)(9) of the Bankruptcy Code. 

The filing also mentioned that an extra $15.33 million is held in Withhold Accounts by approximately 5,000 customers as of Monday