Celsius Custody clients gain ability to withdraw assets after 263-day freeze

On March 2, some users of the Celsius Custody custody service began withdrawing funds from frozen accounts, but faced delays in processing requests.

Glad to be one of the few to get their money back in almost one piece. Hoping everyone else will receive theirs in due time ??

— richieroyce.eth (@Richie_Royce) March 2, 2023

Clients said they were notified about withdrawal capability by email. The bankruptcy-bound crypto-lending platform Celsius Network finally began processing balance withdrawals 263 days after the freeze.

Some whitelisted users were able to transfer assets without issues, while others reported significant delays.

One client was told that multiple withdrawal requests are converted into tickets with the support desk, which may take several days to process due to “staff shortages”.

Earlier Celsius Network representatives said that the right to withdraw 94% of funds had been granted to a restricted number of clients, whose assets were in the custody program Celsius or on “held” accounts. The fate of the remaining 6% would be decided in court.

Meanwhile, clients with deposits under $5,000 will have 70% of their funds returned.

On 13 June 2022, Celsius suspended withdrawals, exchanges and transfers between accounts.

A month later, the platform filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The company’s liabilities exceeded its assets by $2.85 billion.

In September, the platform’s chief Alex Mashinsky stepped down from the post of chief executive.

In early 2023, the New York prosecutors accused Celsius CEO of deceiving investors “by billions of dollars”.