In this, not all requests for asset withdrawals can be processed due to “too many requests and not enough staff”

​Celsius resumes withdrawals for Custody customers

03.03.2023 - 09:45

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3 min

Some Celsius customers have reported being able to withdraw funds from the bankrupt crypto firm for the first time, some 263 days after the lender froze withdrawals in the lead-up to its bankruptcy filing.

According to numerous social media posts, as of March 2, certain customers who held funds in Celsius’ Custody accounts have been overjoyed that they were finally able to withdraw their funds from the lender.

Customers report they received an email a few weeks ago listing those who were eligible to remove their funds, before receiving another on March 2 noting withdrawals could be processed

While some users who whitelisted wallets ahead of their withdrawal attempt received their funds within minutes, others pointed to large delay

Celsius customers discussing withdrawal processing times on Reddit. Source: Reddit

A backlog of withdrawal attempts seems to have built up, however, with some claiming that withdrawal requests are being converted into support tickets that could take some days to process as a result of “too many requests and not enough staff.

A Reddit user claimed they were told their request could take days to process. Source: Reddit

On Jan. 31, Celsius published details on who was eligible to withdraw, with customers who had only ever held funds in custody accounts able to currently withdraw 94% of their original funds.

The custody accounts were only available to United States residents. The withdrawals are restricted to these customers, much to the disappointment of customers with funds in other accounts offered by Celsius.

Custody account holders may yet be able to get back the other 6%, pending future court hearings.

Customers who had transferred funds from the earn or borrow programs to a custody account are apparently able to withdraw 72.5% of their funds at this point in time, up to a maximum of $7,575.

The lender had first announced they would be freezing withdrawals on June 13, citing “extreme market conditions,” before filing for bankruptcy on July 13.

This material is taken from the website https://cointelegraph.com.

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