Users who have money in Celsius’s custody program may now start making withdrawals, however, there are delays because of a lack of requests, according to users. Almost 263 days after the lender blocked withdrawals in the run-up to its bankruptcy filing, some Celsius clients have recorded being able to withdraw money from the collapsed cryptocurrency company for the first time. As of Mar. 2, several clients who had money in Celsius’ Custody accounts have reportedly been pleased about being able to get their money out of the lender. This is according to various social media posts.
Today, withdrawals will reopen for Distributable Assets in certain Custody Accounts.
— Celsius (@CelsiusNetwork) March 2, 2023
Consumers claim to Receive a Correspondence a Few Weeks Ago
Consumers claim they first got a notification a few weeks ago that listed people who were able to withdraw their monies, followed by another email on March 2 that said withdrawals could be completed. While some customers reported receiving their monies within minutes after whitelisting their wallets in advance of withdrawal attempts, others reported significant delays.
Nevertheless, there appears to be a delay in withdrawal requests, with some reporting that they are being turned into support tickets that may take a few days to resolve due to an excess of requests and a lack of employee, leading to a delay of withdrawal requests. Customers who merely kept assets in custody accounts were able to now transfer 94% of their initial balances, according to information released by Celsius on January 31.
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Only residents of the United States have access to custody accounts. To the distress of clients who have money in other wallets offered by Celsius, withdrawals are only available to these customers. In the event of further legal proceedings, the holders of custody accounts could still be able to recover the remaining 6%.
The Lender States Withdrawals to be Frozen
Clients who have moved money from the earning or lending programs to a custody account appear to be eligible to receive 72.5% of their money at this time, up to a limit of $7,575. Before going into bankruptcy on July 13, 2022, the lender had first stated they would be restricting withdrawals on June 13, 2022, claiming harsh market circumstances.
When FTX collapsed in November 2022, a situation similar to this one reportedly occurred. According to accounts, the now-defunct crypto exchange tried to redeem 3,000 wBTC right before declaring bankruptcy. Around 28,000 wBTC were paid to their initial coin in November, following the crash of FTX, which was the greatest monthly payout for wBTC.