diff --git a/apps/api/src/campaign/campaign.service.ts b/apps/api/src/campaign/campaign.service.ts
index a1290b346..526c0e3f3 100644
--- a/apps/api/src/campaign/campaign.service.ts
+++ b/apps/api/src/campaign/campaign.service.ts
@@ -41,7 +41,6 @@ import {
   NotificationService,
   donationNotificationSelect,
 } from '../sockets/notifications/notification.service'
-import { DonationMetadata } from '../donations/dontation-metadata.interface'
 import { Expense } from '@prisma/client'
 import { SendGridParams } from '../notifications/providers/notifications.sendgrid.types'
 import * as NotificationData from '../notifications/notification-data.json'
diff --git a/apps/api/src/withdrawal/withdrawal.controller.spec.ts b/apps/api/src/withdrawal/withdrawal.controller.spec.ts
index c16bd6731..fc9297bf3 100644
--- a/apps/api/src/withdrawal/withdrawal.controller.spec.ts
+++ b/apps/api/src/withdrawal/withdrawal.controller.spec.ts
@@ -1,6 +1,6 @@
-import { NotFoundException, ForbiddenException } from '@nestjs/common'
+import { NotFoundException, BadRequestException } from '@nestjs/common'
 import { Test, TestingModule } from '@nestjs/testing'
-import { WithdrawStatus, Currency } from '@prisma/client'
+import { WithdrawStatus, Currency, Withdrawal } from '@prisma/client'
 import { mockReset } from 'jest-mock-extended'
 import { MockPrismaService, prismaMock } from '../prisma/prisma-client.mock'
 import { CreateWithdrawalDto } from './dto/create-withdrawal.dto'
@@ -9,7 +9,7 @@ import { WithdrawalController } from './withdrawal.controller'
 import { WithdrawalService } from './withdrawal.service'
 import { MarketingNotificationsModule } from '../notifications/notifications.module'
 
-const mockData = [
+const mockData: Withdrawal[] = [
   {
     id: '00000000-0000-0000-0000-000000000001',
     status: WithdrawStatus.initial,
@@ -362,9 +362,98 @@ describe('WithdrawalController', () => {
   })
 
   describe('removeData', () => {
-    it('should not remove withdrawals', async () => {
+    it("should decrement vault's blockedAmount on initial withdrawn deletion", async () => {
       const withdrawal = mockData[0]
-      await expect(controller.remove(withdrawal.id)).rejects.toThrow(new ForbiddenException())
+      prismaMock.withdrawal.delete.mockResolvedValue(withdrawal)
+      await expect(controller.remove(withdrawal.id)).toResolve()
+      expect(prismaMock.withdrawal.delete).toHaveBeenCalledWith({
+        where: { id: withdrawal.id },
+      })
+      expect(prismaMock.vault.update).toHaveBeenCalledWith({
+        where: { id: withdrawal.sourceVaultId },
+        data: {
+          amount: {
+            increment: 0,
+          },
+          blockedAmount: {
+            decrement: withdrawal.amount,
+          },
+        },
+      })
+    })
+
+    it("should increment vault's amount on succeeded withdrawn deletion ", async () => {
+      const withdrawal = { ...mockData[0], status: WithdrawStatus.succeeded }
+      prismaMock.withdrawal.delete.mockResolvedValue(withdrawal)
+      await expect(controller.remove(withdrawal.id)).toResolve()
+      expect(prismaMock.withdrawal.delete).toHaveBeenCalledWith({
+        where: { id: withdrawal.id },
+      })
+      expect(prismaMock.vault.update).toHaveBeenCalledWith({
+        where: { id: withdrawal.sourceVaultId },
+        data: {
+          amount: {
+            increment: withdrawal.amount,
+          },
+          blockedAmount: {
+            decrement: 0,
+          },
+        },
+      })
+    })
+
+    it("shouldn't update vault's amount and blockedAmount on cancelled withdrawn deletion", async () => {
+      const withdrawal = { ...mockData[0], status: WithdrawStatus.cancelled }
+      prismaMock.withdrawal.delete.mockResolvedValue(withdrawal)
+      await expect(controller.remove(withdrawal.id)).toResolve()
+      expect(prismaMock.withdrawal.delete).toHaveBeenCalledWith({
+        where: { id: withdrawal.id },
+      })
+      expect(prismaMock.vault.update).toHaveBeenCalledWith({
+        where: { id: withdrawal.sourceVaultId },
+        data: {
+          amount: {
+            increment: 0,
+          },
+          blockedAmount: {
+            decrement: 0,
+          },
+        },
+      })
+    })
+
+    it("shouldn't update vault's amount and blockedAmount on declined withdrawn deletion", async () => {
+      const withdrawal = { ...mockData[0], status: WithdrawStatus.declined }
+      prismaMock.withdrawal.delete.mockResolvedValue(withdrawal)
+      await expect(controller.remove(withdrawal.id)).toResolve()
+      expect(prismaMock.withdrawal.delete).toHaveBeenCalledWith({
+        where: { id: withdrawal.id },
+      })
+      expect(prismaMock.vault.update).toHaveBeenCalledWith({
+        where: { id: withdrawal.sourceVaultId },
+        data: {
+          amount: {
+            increment: 0,
+          },
+          blockedAmount: {
+            decrement: 0,
+          },
+        },
+      })
+    })
+
+    it('Should throw an error if delete query rejects', async () => {
+      const withdrawal = mockData[1]
+      prismaMock.withdrawal.delete.mockRejectedValue(withdrawal)
+      await expect(controller.remove(withdrawal.id)).rejects.toThrow(
+        new BadRequestException("Withdrawal record couldn't be deleted"),
+      )
+
+      expect(prismaMock.withdrawal.delete).toHaveBeenCalledWith({
+        where: { id: withdrawal.id },
+      })
+
+      expect(prismaMock.vault.update).not.toHaveBeenCalled()
     })
   })
 })
diff --git a/apps/api/src/withdrawal/withdrawal.service.ts b/apps/api/src/withdrawal/withdrawal.service.ts
index 05c579953..4dcfb15fa 100644
--- a/apps/api/src/withdrawal/withdrawal.service.ts
+++ b/apps/api/src/withdrawal/withdrawal.service.ts
@@ -1,10 +1,4 @@
-import {
-  Injectable,
-  Logger,
-  NotFoundException,
-  BadRequestException,
-  ForbiddenException,
-} from '@nestjs/common'
+import { Injectable, Logger, NotFoundException, BadRequestException } from '@nestjs/common'
 import { Withdrawal, WithdrawStatus } from '@prisma/client'
 import { PrismaService } from '../prisma/prisma.service'
 import { CreateWithdrawalDto } from './dto/create-withdrawal.dto'
@@ -124,11 +118,29 @@ export class WithdrawalService {
     return result
   }
 
-  // Functionality will be reworked soon
   async remove(id: string): Promise<Withdrawal | null> {
-    throw new ForbiddenException()
-    const result = await this.prisma.withdrawal.delete({ where: { id: id } })
-    if (!result) throw new NotFoundException('Not found')
+    const result = await this.prisma.withdrawal
+      .delete({
+        where: { id: id },
+      })
+      .catch(() => {
+        throw new BadRequestException("Withdrawal record couldn't be deleted")
+      })
+
+    const isSucceeded = result.status === WithdrawStatus.succeeded
+    const isCancelled =
+      result.status === WithdrawStatus.cancelled || result.status === WithdrawStatus.declined
+
+    await this.prisma.vault.update({
+      where: { id: result.sourceVaultId },
+      data: {
+        amount: { increment: isSucceeded ? result.amount : 0 },
+        blockedAmount: {
+          decrement: isCancelled || isSucceeded ? 0 : result.amount,
+        },
+      },
+    })
+
     return result
   }
 }