Several customers of the custodial firm Celsius Custody started withdrawing money from frozen accounts on March 2, although their requests were processed slowly. Clients claim that they received an email informing them that they may withdraw their funds. 263 days after the freeze, the bankruptcy crypto loan platform Celsius Network started conducting balance transactions.
While some whitelisted customers in Celsius Custody reported swift asset transfers, others complained about lengthy delays.The fact that several withdrawal requests are converted into support tickets, which might take several days to complete due to “lack of staff,” was used to justify this to clients.
An earlier statement made by Celsius Network personnel said that only a small number of clients who had money in the Celsius custodial program or “held accounts” were qualified to withdraw 94% of the money. A judge will decide what will happen to the remaining 6%.
Some Celsius Custody Clients are Still Waiting for Their Turn
Nevertheless, there appears to be a backlog of withdrawal requests in Celsius Custody, with some alleging that they are being turned into support tickets that may take a few days to resolve since there are “just toomany requests with insufficient employees.”
A 70% refund will be given to consumers who made deposits under $5,000. As a reminder, Celsius Custody ceasedall withdrawals, swaps, and account transfers on June 13, 2022. The platform submitted a Chapter 11 bankruptcy petition a month later. Liabilities outweighed assets by $2.85 billion at the firm. Alex Mashinsky, the CEO of the platform, resigned from his position in September. The New York Attorney General’s Office charged Celsius‘s CEO with scamming investors “for billions of dollars” at the beginning of 2023.