Eligible Celsius Users Can Withdraw Most of Their Funds But May Face Long Delays

CryptoMode Celsius Network

After months of waiting, some customers of Celsius, the now-bankrupt crypto firm, have reported being able to withdraw funds from the company’s Custody accounts. 

It marks the first time in 263 days that specific customers can access their funds. For those unaware, Celsius froze withdrawals in the lead-up to its bankruptcy filing.

Several users have taken to social media to express their relief at finally being able to withdraw their funds. They received an email notification a few weeks ago informing them of their eligibility. 

However, while some users received their funds within minutes of whitelisting their wallets, others experienced significant delays. Unfortunately, that is to be expected.

A backlog of withdrawal requests has appeared, with some users reporting that their requests have been converted into support tickets that could take days to process. That is likely due to overwhelming requests and a staff shortage.

In January, Celsius announced details of who was eligible to withdraw funds. Customers who had only ever held funds in Custody accounts can withdraw 94% of their original funds. 

However, withdrawals are restricted to US residents who held funds in Custody accounts. That decision is a hard blow to customers with funds in other accounts.

For those who held funds in Custody accounts, they may be able to recover the remaining 6% of their funds pending future court hearings. In addition, customers who transferred funds from the earn or borrow programs to a Custody account can withdraw 72.5% of their funds, up to a maximum of $7,575.

Celsius froze withdrawals on June 13, 2022, citing “extreme market conditions,” before filing for bankruptcy on July 13. The delays in processing withdrawal requests frustrate users waiting months to access their funds. As a result, they will have to be a bit more patient to recover most of their assets.

It is unclear whether the remainder of the money will ever be returned to its rightful holders. Court hearings are underway and scheduled for future dates. 

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