Celsius Users Start Making Withdrawals from Custody Accounts

Celsius Users Start Making Withdrawals from Custody Accounts

After more than 263 days of halted withdrawals, Celsius Custody account owners can now withdraw their funds.

Celsius, a bankrupt crypto lender established in 2017, has reportedly opened a withdrawal process for some of its clients.

The crypto lender warned customers about freezing withdrawals on June 13th, 2022, citing "harsh market conditions." Then, after a month, on July 13th, it filed for bankruptcy.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

How to Use Crypto? 5 Rewarding Strategies Explained (Animated)

How to Use Crypto? 5 Rewarding Strategies Explained (Animated) How to Use Crypto? 5 Rewarding Strategies Explained (Animated)

According to current reports, some customers that held their funds in the Celsius Custody accounts received a green light to withdraw. However, most of its users have also reported that the backlog of requests has led to withdrawal delays.

On March 2nd, Celsius customers used social media to celebrate the news. According to customers, a few weeks ago, users received emails with the names of those who qualified to withdraw their funds. Then on March 2nd, another email stated they could begin processing their withdrawals.

Those customers who whitelisted their wallets before attempting to withdraw got their funds quickly. However, others who didn't do so experienced significant delays.

Some customers complained that the system converted their withdrawal requests into support tickets, which would take days to be processed because of "limited staff attending to so many requests."

On January 31st, Celsius revealed that customers will soon be able to withdraw their funds. According to reports, "customers with funds in their custody accounts can only withdraw 94% of their total funds."

Unfortunately, the custody accounts can be accessed only by the residents of the United States. Other customers were disappointed as they were not eligible to withdraw their funds.

The company highlighted that the lender's custody wallet users might be able to withdraw the remaining 6% in the future.

In February, Celsius creditors objected to the crypto lender's motion to extend the deadline for its restructuring plan.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree