Celsius Allows Withdrawals for Some Users Despite Technical Issues

By: Eva Baxter

Crypto lender Celsius, which recently declared bankruptcy, began allowing withdrawals for some eligible custody clients starting November 29. However, several customers have faced issues, particularly with slow withdrawal processes, and some are unable to access the lender's app. The eligible custody users, categorized as holders of Class 6A General Custody Claims and/or Class 6B Withdrawable Custody Claim can now withdraw 72.5% of their cryptocurrency, minus any transaction fees, till February 28.

An increase in complaints regarding accessibility issues, particularly through Facebook log-in, is causing frustration among users. Despite such issues, the company had indicated in its court filings that it anticipated a high influx of withdrawal requests which might result in delays.

Legal hassles have plagued Celsius since it announced bankruptcy. A reorganization plan was endorsed in March that assured account holders their funds, in two tranches, equaling to 72.5% of their deposits. Following this, the company's equity was slated to transfer to NewCo, managed by the Fahrenheit consortium in September. However, Celsius is still facing multiple legal challenges from different regulatory bodies, including the U.S. Securities and Exchange Commission, the Federal Trade Commission, and the Commodity Futures Trading Commission.