Crypto lender Celsius freezes withdrawals due to ‘extreme market conditions’
One of the biggest crypto lenders, Celsius Network, told users on the night of June 12 that it was suspending all withdrawals, trades and transfers between accounts due to “extreme market conditions”.
“We are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations while taking steps to preserve and protect assets,” the company said in a blog post.
Celsius lends customer deposits to other users to earn a return. The company managed $11.8 billion in assets as of May 17, according to its website. It offers users annual percentage returns of up to 18.63% on cryptocurrency deposits. The company said it had 1.7 million users. Celsius raised $750 million late last year from investors including Canadian pension fund Caisse de depot et placement du Quebec.
LILY Meet the rookie trader who fought off NFT hackers and dodged the crypto crash: “When are you selling?”
In April, Celsius came under regulatory pressure and stopped offering interest-bearing accounts to unaccredited investors in the United States. Some market watchers have claimed that Celsius also played a role in the collapse of cryptocurrencies Luna and TerraUSD last month, which Celsius disputes.
Celsius’s announcement came at the end of a brutal weekend for cryptocurrencies. Over the past 24 hours, bitcoin fell 6.3% to $25,756 as of 12:10 a.m. June 13, while ether was down 6.4% to $1,373, according to data from CoinDesk. The global crypto market capitalization fell 6.7% over the past day to $1.03 billion, according to data from CoinMarketCap. The Celsius token’s price plunged 33% to $0.25 in the past 24 hours, according to CoinGecko, a cryto data provider.
Celsius said he hoped to lift his suspension on withdrawals, trades and transfers “as soon as possible”, but could not predict when that would happen.
“There is a lot of work to do as we look at various options, this process will take time and there could be delays,” he said.
This article was published by The Wall Street Journal, part of the Dow Jones