Celsius custody customers begin withdrawing funds, details inside

• Celsius has resumed withdrawals for customers with Custody Accounts.
• The withdrawals have opened 263 days after they were suspended in June last year.

Bankrupt crypto lender Celsius Network has finally opened up withdrawals for certain customers, almost a year after it suspended withdrawals before filing for Chapter 11 bankruptcy.

Customers who held Celsius custody accounts have been able to withdraw their funds from the bankrupt crypto lender as of 2 March. 

Withdrawals delayed due to massive backlog

As per Celsius’ official statement, withdrawals were reopened for “Distributable assets in certain Custody Accounts.”

Overjoyed Celsius customers have been sharing their withdrawal stories on social media including Twitter and Reddit.

The withdrawals resumed 263 days after they were first suspended in June last year. Customers who were eligible to withdraw received an email from the bankrupt lender, which asked them to submit requests for withdrawals following know-your-customer (KYC) completion. 

Details regarding withdrawal eligibility were shared by Celsius last month. The document stated that customers who had only held funds in Custody Accounts were eligible to withdraw funds, much to the dismay of Earn Account customers.

The eligible customers are allowed to withdraw 94% of their funds. The remaining 6% is contingent on the outcome of future court hearings.

As for those who had transferred funds from Earn accounts to custody accounts, the withdrawal limit has been set at 72.5%, with withdrawals of no more than $7,575. 

Here’s what happened next

Excited customers scrambled to get hold of their funds, leading to a considerable backlog of withdrawal requests. The backlog caused delays in withdrawals, which several users complained about.

Customers who whitelisted their wallets were reportedly able to get their withdrawals processed much faster. Users on Reddit reported a wait time of as much as 24 hours for USDC withdrawals. Some withdrawal requests have apparently been converted to support tickets by Celsius staff.

News of the withdrawal resumption caused Celsius Network’s native token CEL to fall. According to data from CoinMarketCap, the token, at press time, was trading at $0.37, down more than 21% over the past 24 hours.