Some Celsius Custody Customers Begin Withdrawing Their Assets

Several Celsius clients have claimed to be able to withdraw funds from the collapsed crypto business for the first time, over eight months after the lender halted withdrawals prior to declaring bankruptcy.

Celsius suspended all transactions and transfers across its network when it filed for bankruptcy in July 2022, owing its clients $4.7 billion. When it first happened, it was attributed to “extreme market conditions” spurred on by Terra’s demise.

However, on February 14, the firm indicated that it would begin notifying eligible users of the measures needed to effectuate withdrawals for distributable assets in specific custody accounts.

They insisted that the court had granted the struggling lender permission to resume withdrawals for a select number of clients whose assets were kept in custody accounts, claiming,

“At this time, Celsius is authorized to return assets that fall into two categories, subject to certain eligibility requirements.”

Today, withdrawals will reopen for Distributable Assets in certain Custody Accounts.

— Celsius (@CelsiusNetwork) March 2, 2023

Some Celsius Clients Are Now Withdrawing

The “Pure” custody account assets and the “Transferred” custody account assets are among the users who are qualified for withdrawal. Some current users and former Celsius employees, including “insiders,” clients with ongoing loans as of December 20, 2022, and qualified users whose custodial assets are less than the withdrawal transaction fees, aren’t currently permitted to withdraw, according to the article.

As a result, customers received an email containing a list of individuals who were qualified to withdraw their funds, followed by another email on March 2 informing them that withdrawals could be processed.

Meanwhile, as of March 2, certain clients who kept funds in Celsius’ Custody accounts were delighted that they could eventually remove their assets from the company, according to various social media posts.

Although some customers who had whitelisted wallets before attempting a withdrawal said they had received their money in a matter of minutes, others reported prolonged delays.

A user going by the Twitter handle “richieroyce.eth” claimed to have been able to retrieve their money back virtually “in one piece,” however another user noted that on the first day they attempted to withdraw money, the app simply stated “Your Account cannot be approved” without offering any instructions.

Moreover, there appears to be a congestion of withdrawal requests, with some stating that withdrawal requests are being turned into support tickets that may take some days to process due to “too many requirements and insufficient employees.”