Citing market conditions as well as the need for “stablizing liquidity”, crypto lending company Celsius has stopped all withdrawals, swaps and transfers between accounts.
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” the company was quoted as saying in a post.
To recap, Celsius raised $750 million in funding late last year, is a significant player in crypto lending. Celsius has offered high interest rates for customers, in particular for its own Celsius token, CEL. However, the price of the Celsius token has fallen sharply in the past week. The drop in price follows the aftermath of the Terra collapse and turmoil in crypto markets.
“We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” Celsius said.
