Withdrawals And Transfers Have Been Halted By Cryptocurrency Lender Celsius Due To Extreme Market Conditions

Celsius, whose investors include stablecoin issuer Tether International, growth equity firm WestCap Group, and Canadian pension fund Caisse de Dépôt et Placement du Québec, writes, We are making this move now to put Celsius in a better position to satisfy its withdrawal obligations over time.

The statement comes after one of the most volatile weekends in cryptocurrency history, with hundreds of millions of dollars in liquidation. Bitcoin and Ethereum were exchanging at around $25,585 and $1,346, separately, at their most reduced values in the north of a year at the hour of distribution.

Celsius Network’s CEO, Alex Mashinsky, has endeavored to console clients by expressing that they can pull out their resources whenever and addressing cynics. Customers that move assets into Celsius accounts and work in assistance jobs for up to 180 days will receive rewards, according to the company.

Celsius Network, one of the largest crypto lenders, informed customers on Sunday evening that it is halting withdrawals, swaps, and transfers between accounts, sparking outrage and sending the firm’s token’s price down by 60% in the last hour to as low as 19 cents.

Series B Financing Round To $750 Million In November

Celsius, whose investors include stablecoin issuer Tether International, growth equity firm WestCap Group, and Canadian pension fund Caisse de Dépôt et Placement du Québec, writes, We are taking this move now to put Celsius in a better position to satisfy its withdrawal obligations over time. Our first aim is to act in the best interests of our community. We’ve set off a segment in our Terms of Use that will permit this cycle to happen to respect that responsibility and adjust to our gamble the executive’s technique. Celsius has tremendous assets, and we’re working hard to meet our responsibilities.

Celsius allows users to deposit Bitcoin, Ethereum, and Tether and receive weekly interest payments. The company was valued at $3.25 billion when it extended its oversubscribed Series B financing round to $750 million in November. The platform can pay up to 18 percent interest per year depending on the time horizon and the token. Celsius claims that 1.7 million individuals call it their home for crypto on its website.

Hundreds Of Millions Of Dollars In Liquidation

The statement comes after one of the most volatile weekends in cryptocurrency history, with hundreds of millions of dollars in liquidation. Bitcoin and Ethereum were trading at around $25,585 and $1,346, respectively, at their lowest values in over a year at the time of publication. Other well-known crypto projects, such as Solana, BNB, and FTT, were also unavailable. Following the collapse of Terraform Labs’ Luna and its sister token UST last month, crypto lenders are being scrutinized more closely.

In recent weeks, Celsius Network’s CEO, Alex Mashinsky, has attempted to reassure clients by stating that they can withdraw their assets at any time and questioning skeptics. Customers that move assets into Celsius accounts and work in assistance jobs for up to 180 days will receive rewards, according to the company. The beauty of what Celsius has accomplished is that we deliver yield, pay it to those who would never be able to do it themselves, take it from the wealthy, and beat the index. It’s like winning 15 medals in 15 different sports at the Olympics, Mashinsky said in a video aired in December.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing