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Home Technology Crypto lender Celsius pauses withdrawals, transfers citing ‘extreme market conditions’

Crypto lender Celsius pauses withdrawals, transfers citing ‘extreme market conditions’

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Crypto lender Celsius: Celsius Network which is among the largest crypto lenders informed customers on Sunday night that it would be halting withdrawals, swaps, and transfers between accounts in a decision that has led to debates and has caused the price of its token to plunge by 60% plunge in the last 24 hours to as just 19 cents.

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“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” wrote Celsius which is a stable coin issuer Tether International, growth equity fund WestCap Group and Canadian pension fund Caisse de Depot et Placement du Quebec among its investors.

Crypto lender Celsius
Image Credits: Celsius Network

“Acting in the best interests of our community is our highest priority. To honor that commitment and to comply with our risk management guidelines we have inserted the clause within our terms of Service which will permit this process to be carried out. Celsius is a valuable asset and we are striving to ensure that we meet the obligations we have made.”

Celsius the token, estimated at $3.25 billion at the time it expanded it’s “oversubscribed” Series B financing round to $750 million in November. lets users deposit Bitcoin, Ethereum and Tether and receive interest-free payments every week. Based on the time frame and the cryptocurrency the platform is offering up to 18% interest per year. According to its site, Celsius declares that 1.7 million users use “Celsius their home for crypto.”

The announcement comes following a violent weekend for the market for cryptocurrency that saw millions of dollars of liquidation. As of the time of writing, Bitcoin was trading at approximately $25,585, and Ethereum at $1,346, one of the lowest levels they have seen for over one year. Other crypto projects with a high profile like Solana, BNB and FTT were also down.

The crypto lenders are now under greater scrutiny due to the fall of Terraform Labs’ Luna and its counterpart, the UST this month. Alex Mashinsky, chief executive of Celsius Network, has been trying to assure customers over the past few weeks, explaining that they can take their assets out anytime and even questioned skeptical people. The company has also introduced regular promotions recently and offered rewards to customers who they transfer assets to Celsius accounts and were in positions that lasted for more than 180 days.

“The benefit of the work Celsius has achieved is that we produce yield that we then pay those who wouldn’t be able to achieve it on their own, we get it from the wealthy and outdo the market. This is equivalent to attending the Olympics and winning 15 medals across fifteen different areas,” Mashinsky said in the video that was streamed in December.

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