Crypto firm Celsius halts all transfers and withdrawals between accounts
Celsius Network, which raised $750 million in funding late last year, is a significant player in crypto lending.
Celsius Network, which raised $750 million in funding late last year, is a significant player in crypto lending.
Cryptocurrency lending firm Celsius Network will halt 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.
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Bitcoin’s expansion coincided with an earlier decline following the Celsius announcement, falling more than 6% to a low of $24,888, an 18-month low. Ether, the world’s second-largest cryptocurrency, fell more than 8% to $1,311, its lowest since March 2021.
“We are taking this necessary action … to stabilize liquidity and operations, while we take steps to preserve and protect assets,” the company said in a blog post.
“In addition, customers will continue to earn rewards during the pause in line with our commitment to our customers.”
Celsius Network, which raised $750 million in funding late last year, is a significant player in crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends cryptocurrencies to earn returns.
However, the sector has come under regulatory scrutiny, especially in the US.
The crypto market has been under pressure in recent months, falling along with other so-called riskier assets as interest rates have risen around the world.
The price drop has also been caused by and contributed to the collapse of some crypto projects, most notably the collapse of the stablecoin TeraUSD.
TeraUSD broke its dollar peg last month and rocked the crypto industry.