Some Celsius clients 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 run-up to its bankruptcy filing.
According to numerous social media posts, as of March 2, certain customers who held funds in Celsius Custody accounts were overjoyed that they were finally able to withdraw their funds from the lender.
Glad to be one of the few to get your money back in almost one piece. Hoping everyone else will receive theirs in due time.
— richieroyce.eth (@Richie_Royce) March 2, 2023
Clients report receiving an email a few weeks ago listing those who were eligible to withdraw their funds, before receiving another on March 2 stating that withdrawals could be processed.
While some users who whitelisted wallets prior to their withdrawal attempt received their funds within minutes, others noted long delays.
However, there seems to be a backlog of removal attempts, with some claiming that removal requests are turning into support tickets that could take a few days to process, as a result of “too many requests and understaffing.”
On January 31, Celsius released details on who was eligible to withdraw, with clients who had only held funds in escrow accounts currently able to withdraw 94% of their original funds.
Custodial accounts were only available for the United States. residents. Withdrawals are restricted to these clients much to the disappointment of clients with funds in other accounts offered by Celsius.
Related: Bitcoin supply engulfed falls to negative after Celsius-linked 11,500 wBTC burn
Custodial account holders can still recover the other 6%, pending future court hearings.
Customers who had transferred funds from the earning or loan programs to an escrow account may apparently withdraw 72.5% of their funds at this time, up to a maximum of $7,575.
The lender had first announced that it would freeze withdrawals on June 13, 2022, citing “extreme market conditions,” before filing for bankruptcy on July 13.
