Customers Of Celsius Custody Have Finally Started To Withdraw Their Funds

The court has granted Celsius permission to resume withdrawals for certain customers whose assets are held in Custody Accounts. Currently, Celsius is allowed to return assets falling under two categories, but customers must meet certain eligibility requirements as explained in question 2:

1. “Pure” Custody Account Assets: These assets were never part of the Earn or Borrow Programs and were directly transferred into the Custody Program. There is no limit to the amount of Pure Custody digital assets eligible for withdrawal.
2. “Transferred” Custody Assets: These assets were moved from the Earn or Borrow Program into the Custody Program within the 90 days before Celsius filed for Chapter 11 protection on July 13, 2022. Celsius can allow withdrawals for customers with a total of transferred custody assets under $7,575 (an amount defined by section 547 of the Bankruptcy Code). Customers with a total of transferred assets greater than $7,575 are currently unable to withdraw.

Customers of Celsius who had their funds stored in the company’s custody program can therefore now finally make withdrawals. The company informed its customers of this development on March 2nd. There are also increasing reports on social media confirming that assets have been released.

Some users have stated that delays may occur due to the high volume of requests. On January 31st, Celsius published a list of individuals who were eligible for withdrawals, primarily customers of the custody program (brokerage accounts). 

According to the company, these customers have received 94 percent of their assets so far. The custody accounts were only available to customers residing in the United States.