Lighter Users Face Withdrawal Delays Due to Arbitrum Congestion
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 31 2025- Withdrawal Issues: Users on the Lighter platform are experiencing withdrawal delays due to congestion on the Arbitrum network, with the team remaining silent since confirming the issue on December 30, which has led to a decline in user trust.
- User Advisory: Users are advised to switch to Ethereum Layer 1 withdrawals, which may take up to four hours, and this delay could negatively impact user experience and lead to potential fund outflows.
- Market Reaction: The price of the $LIT token has dropped from $3.25 to $2.80, indicating market concerns over the withdrawal issues, although there is no data on institutional fund outflows, the market sentiment remains uneasy.
- Technical Challenges: This incident highlights ongoing technical challenges in Layer-2 networks, and if the Arbitrum congestion issues are not resolved, it could negatively impact user fund security and the platform's long-term growth prospects.
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.
