Crypto Lender Celsius Stops Withdrawals, Transfers Amid Market Collapse

Major crypto lending platform Celsius Network has announced that it would temporarily halt all account withdrawals, transfers, and swaps following "extreme market conditions."

The firm's coin CEL has reportedly plunged to 60% amid the ongoing market pressure. Over the past hour, its value has reached 19 cents, the lowest record it hit at the time of writing.

Celsius is Pausing All Withdrawals and Transfers

According to CNBC, the US-based cryptocurrency lending and borrowing firm told its users that it would suspend all operations in the accounts because of a challenging issue in the community.

The firm said that the action being taken recently aims to put Celsius in a "better position" to honor withdrawal obligations.

"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," Celsius added.

The company has offered an annual interest of 18% to all of its customers who want to deposit their Ethereum, Tether, and Bitcoin. The platform also appears to be a safe haven for lending and borrowing, as millions of users said that Celsius is their "home" for digital transactions.

All over the world, cryptocurrencies, as well as stocks, have been experiencing the whip of the bear market. The painful state of the market has resulted in million-dollar liquidations.

Notably, Bitcoin, the largest cryptocurrency in the world, did not escape the bearish stride. The popular coin, as of writing, has hit about the $25,000 mark, its lowest price so far this year.

That's the only crypto that is affected by the market pressure. Other coins such as BNB and Solana have also reportedly declined at the time.

The Collapse of LUNA and UST

The crypto lenders are currently in a dire position to convince their customers to use their services since many people are doubtful about withdrawing their assets on the platforms.

The market crash was further intensified when Luna and UST, its sister token, violently plunged back in May. Celsius Network CEO Alex Mashinsky guaranteed that customers could freely withdraw anytime despite the market state.

In addition, the company has rolled out a promotion for the users. The promo involves giving rewards to users who will transfer their assets to them, per Techcrunch.

Speaking of another crypto lending platform, Nexo tried to reach out to Celsius and offer support for the acquisition of the "collateralized" loan portfolio. Unfortunately, Celsius turned down the offer.

Meanwhile, Coinbase pulled back its job offers following the downward trend in the crypto market, per Tech Times.

This article is owned by Tech Times

Written by Joseph Henry