Backlog of withdrawal requests slows down Celsius custody program

Celsius customers participating in the company’s custody program can now withdraw their funds. However, some users are experiencing delays in processing their requests due to a backlog of pending withdrawals. 

After a crypto lending company Celsius froze withdrawals before filing for bankruptcy, some customers now report that they can finally withdraw their funds 263 days later. As per multiple posts on social media, specific users with funds in Celsius’ custody accounts are expressing their joy over finally being able to withdraw their funds from the company.

According to customer reports, they received an email from Celsius a few weeks ago that listed individuals eligible to withdraw their funds from the custody program. The company sent another email on March 2, which notified customers that the withdrawal process had commenced and they could proceed with their requests.

Although some users who had previously whitelisted their wallets could receive their funds within minutes of their withdrawal attempt, others have reported significant delays. A backlog of withdrawal requests has developed, with some users suggesting that their demands are being converted into support tickets that may take several days to process. The cause of these delays is a high volume of withdrawal requests, which the company’s staff may need help to keep up with at the time.

Withdrawals are limited to US customers

Celsius released information on Jan. 31 regarding the eligibility criteria for withdrawals. According to the announcement, customers who had exclusively held funds in custody accounts could withdraw 94% of their original funds.

However, it’s worth noting that custody accounts were only accessible to residents of the United States. As a result, the withdrawals are limited to these customers, which has left those with funds in other types of accounts offered by Celsius feeling disappointed.

There is still a possibility that custody account holders can recover the remaining 6% of their funds, pending future court hearings. Customers who had transferred their funds from earn or borrow programs to custody accounts are reportedly eligible to withdraw up to 72.5% of their funds, with a maximum withdrawal limit of $7,575.

Celsius had initially declared a freeze on withdrawals on June 13, 2022, citing “extreme market conditions,” before filing for bankruptcy on July 13.