Crypto Lender Celsius Halts All Withdrawals, Swaps and Transfers
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Celsius Halts All Withdrawals
Crypto lending firm Celsius has stopped all withdrawals, swaps, and transfers between accounts, citing market conditions as well as the need for "stabilizing liquidity."
"Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swaps, 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 said in a blog post.
The team's focus is to protect and preserve assets, and the ultimate objective is stabilizing liquidity and restoring withdrawals, swaps, and transfers between accounts as quickly as possible.
Celsius said its operations were continuing, but that there was “a lot of work ahead as we consider various options.”
“We understand that this news is difficult. We are working with a singular focus: to protect and preserve assets to meet our obligations to customers,” the company added.
Celsius Token Takes a Plunge
Following the announcement, the native token of the Celsius Network, CEL, quickly reacted by dropping down 35% from the past 24 hours to $0.24, according to data from CoinGecko.
Launched in 2017, Celsius raised $750 million in funding late last year to offer interest-bearing products to customers who deposit their cryptocurrencies with the company and lend out cryptocurrencies to earn a return. Depending on the time horizon and the token, the platform offers as much as 18% interest a year.