Crypto lending platform Celsius would be pausing withdrawals, swaps, and transfers due to “extreme market conditions”

Crypto lending platform Celsius said it would be suspending withdrawals on its platform, citing market conditions as prices for Ether and other cryptocurrencies fall.

Celsius lending platform suspends withdrawals and transfers

The company took to Twitter to announce the suspension of withdrawals, transfers and swaps, saving idea:

Led by Alex Mashinsky, the company reportedly has around $12 billion in customer assets across 1.7 million users as of May. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals…We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations”, the firm said in a blog.

The price of Celsius’ native token, the Celsius token, plummeted on the news, dropping 45% to $0.21 per coin. The development represents the latest sign of market stress in the cryptocurrency sector. The price of ether fell below $1,400.

The announcement follows a decline in cryptocurrency prices over the weekend and claims on social media that the network is facing a liquidity crisis. It remains to be seen whether other lending platforms will have a similar impact.

Last week, BlockFi, another lender, raised a round at a valuation of $1 billion — well below the $5 billion valuations it reportedly had increase in 2021.

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