Good news for some crypto customers has come in the form of a rare occurrence–the ability to withdraw funds from bankrupt cryptocurrency firm Celsius. After freezing withdrawals 263 days ago in the leadup to its bankruptcy filing. some customers have reported being able to access their funds as of March 2, leaving many feeling relieved and excited.
This development offers a glimmer of hope for those who had their assets stuck in the exchange, but it is unclear how long this will last or if all customers will be able to withdraw their funds.
This is good news for customers of the ill-fated exchange, as it means that some of the money they had held in their accounts will be returned to them. It is unclear, however, how much of the original funds each customer will receive due to legal fees and other costs associated with the settlement.
Celsius customers encounter delays due to backlog of requests
The email sent a few weeks prior identified those who were eligible for withdrawals and another email was soon sent announcing the process had begun. Some customers were able to access their funds quickly while others encountered delays.
It appears there is an overload of requests causing some withdrawal requests to be converted into support tickets with extended wait times before funds are received.
Celsius released information on January 31 identifying which customers were eligible to receive withdrawals. Those with funds in custody accounts who resided in the United States were able to withdraw 94% of their initial deposit, while those with funds in other accounts could not receive any funds.
For customers who had transferred funds from the earn or borrow programs to custody accounts, they can only get back 72.5% of their initial deposit, up to a maximum of $7,575. This followed the announcement that withdrawals would be frozen due to “extreme market conditions” and was finalized when Celsius filed for bankruptcy on July 13.