Celsius Custody customers finally begin withdrawals 263 days after freeze

Almost 263 days after the lender halted withdrawals in the run-up to its bankruptcy filing, some Celsius clients have reported being able to withdraw money from the insolvent cryptocurrency company for the first time.

As of Feb. 2, several customers who had money in Celsius’ Custody accounts had been ecstatic to finally be able to get their money out of the lender, according to various social media postings. Consumers claim they first got an email identifying people who may withdraw their monies a few weeks ago, followed by another email on March 2 informing them that withdrawals could be handled.

Although some customers who whitelisted wallets before attempting a withdrawal claim to have gotten their money in a matter of minutes, others report significant delays. Nevertheless, there seems to be a backlog of withdrawal requests, with some reporting that withdrawal requests are being turned into support tickets that may take a few days to fulfill due to “too many requests and not enough employees.”

Customers who had only ever kept money in custody accounts were able to now withdraw 94% of their initial balances, according to information released by Celsius on January 31.

Only residents of the United States have access to the custody accounts. To the dismay of clients who have money in other accounts provided by Celsius, the withdrawals are only available to these customers. According to upcoming court proceedings, the owners of custody accounts could yet be able to recover the remaining 6%.

Clients who have moved money from the earn or borrow programs to a custody account seem to be allowed to withdraw 72.5% of their money right now, with a limit of $7,575.

Prior to declaring bankruptcy on July 13, 2022, the lender initially made an announcement on June 13, 2022, claiming “severe market circumstances,” that they would be halting withdrawals.