Several Celsius customers reported being able to withdraw funds from the bankrupt cryptocurrency firm for the first time, roughly 263 days after withdrawals were frozen before the company filed for bankruptcy.
According to numerous social media posts, as of March 2, some customers who held funds in Celsius escrow accounts were ecstatic that they were finally able to withdraw funds from the lender. Customers reported that they received an email a few weeks ago listing those eligible to withdraw their funds, and then received another email on March 2 stating that withdrawals could be processed. While some users who whitelisted their wallets before attempting a withdrawal received their funds within minutes, others noted significant delays.
However, a backlog of withdrawal attempts appears to have built up, with some claiming that withdrawal requests are being converted into support tickets that can take days to process due to "too many requests and not enough staff." On January 31, Celsius published details of who was eligible for withdrawals, with customers who once only held funds in escrow accounts now able to withdraw 94% of their original funds.
Escrow accounts are for use by US residents only. Withdrawals were limited to these customers, much to the disappointment of customers who had funds in other accounts offered by Celsius. Escrow account holders may still get the other 6% back during a future court hearing.
Customers who transferred funds from the Earn or Borrow program to an escrow account could apparently withdraw 72.5% of their funds at this time, up to a maximum of $7,575.
Before filing for bankruptcy on July 13, the lender first announced they would freeze withdrawals on June 13, citing "extreme market conditions."
