Celsius Network is a regulated, SEC-approved lending platform that allows customers to earn interest on their crypto deposits or take out crypto-collateralized loans. On Sunday night, celsius, one of the top crypto lenders posted that it was “pausing all withdrawals, Swaps, and transfers between accounts.” It is worth noting that it currently has a customer base of 1.7 million people.
Celsius halts withdrawals
“Today, we are notifying you that Celsius is suspending all withdrawals, Swaps, and transfers between accounts due to unusual market conditions.” Celsius said in a post on its website on Sunday, “We are making this move today to put Celsius in a stronger position to honor its withdrawal obligations over time.”
Celsius, says its investors include stablecoin issuer Tether International, growth equity firm WestCap Group, and Canadian pension fund Caisse de Dépôt et Placement du Québec.
According to the Corporation, its first aim is to act in the best interests of its community. Additionally, Celsius has triggered a section in its Terms of Use that will allow this process to take place in order to honor that commitment and conform to the Corporation’s risk management strategy.
Celsius Crypto Network
The large yields of Celsius Networks, its ties to the bankrupt stablecoin Terra, and its reserves have all been questioned. Assets on its network were worth $12 billion in May, down from $24 billion in December 2021. According to The Financial Times, a billion dollars left the system between March and May.
Crypto writer Colin Wu, who goes by the handle @WuBlockchain on Twitter, posted that Celsius has transferred around 104,000 ETH to FTX in the last three days, including approximately 50,000 ETH today, 12,000 ETH yesterday, and 42,000 ETH the day before yesterday. Furthermore, according to the post Celsius moved approximately 9,500 WBTC to FTX today.
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. According to the Company customers that move assets into Celsius accounts and work in assistance jobs for up to 180 days will receive rewards.
The Company just replaced its Chief Financial Officer after former CFO Yaron Shalem was detained by Israeli authorities in 2021. Consequently, after the news broke, the price of Celsius’s CEL token dropped by more than 50%.
The Corporation has also had to deal with regulatory difficulties, such as cease-and-desist letters from law enforcement agencies.
