Lighter Faces Withdrawal Delays; Users Advised to Use Ethereum L1 Workaround
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 31 2025- Withdrawal Issues: Lighter is experiencing withdrawal delays due to congestion on the Arbitrum network, with the last processed block at 137,759,880 being over four hours late, leading to user reports of “Too many L2 Withdrawals” errors that negatively impact user experience and platform reputation.
- User Mitigation Strategies: The team has advised users on Discord to switch to Ethereum L1 withdrawals, which can take up to four hours to process; however, this advice has not been communicated through broader social media channels, indicating a significant communication gap that could lead to user attrition.
- Market Reaction: Despite the withdrawal disruptions, the $LIT token is currently trading at approximately $2.80, with no direct financial impacts reported from funding or institutional sources, indicating relative market stability for the token amidst operational challenges.
- Historical Context: This incident echoes a similar event on October 11, 2025, when a market liquidation caused Lighter to halt operations for several hours, highlighting the need for improvements in handling network congestion and ZK proof bottlenecks to prevent future user losses.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
