Crypto firm Celsius freezes all transfers, withdrawals between accounts

Celsius Network had last year raised $750 million in funding and is a significant player in crypto lending

June 13, 2022

Crypto currencies tumble as lending platform Celsius blocks withdrawals

Crypto currency lending firm Celsius Network will pause withdrawals and transfers between accounts due to “extreme market conditions“, the company said on Monday, in the latest sign of pressure in the crypto industry.

Crypto markets have been under pressure in recent months, falling alongside other so-called risk assets as interest rates have risen around the world.

Celsius Network had last year raised $750 million in funding and is a significant player in crypto lending. It offers interest-bearing products to customers who deposit their crypto currencies with the company and lends out crypto currencies to earn a return.

The company said in its blog post, “We are taking this necessary action…in order to stabilize liquidity and operations while we take steps to preserve and protect assets. Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers.”

It added, “Acting in the interest of our community is our top priority. In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place. Celsius has valuable assets and we are working diligently to meet our obligations.”

As of May 17, the company had processed $8.2 billion worth of loans and had $11.8 billion in assets, according to its website. It said in August last year that it had more than $20 billion in assets.

While crypto lending has become increasingly big business, the sector has come under regulatory scrutiny, particularly in the U.S.

Celsius has also grappled with high sell-offs in recent months. The lender says on its website that it has about $3.8 billion of assets, down from the $24 billion it disclosed in late December 2021.

[With Inputs from IANS]

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