Cryptocurrency lender Celsius halts withdrawals and transfers, citing “extreme market conditions.”
Celsius facing “default”?
Cryptocurrency lender C Network, recently valued at around $3 billion, told clients on Sunday night that it is suspending “withdrawals, swaps, and transfers between accounts.”
The announcement will stop depositing, withdrawing and transferring assets between accounts, leading to rumors that this project is about to “default”. The CEL token price has dropped by 76% in the last 7 days.
“We take this action today to put C Netwwork in a better position to honor, over time, its cash-out obligations,” wrote Celsius, stablecoin issuer Tether International and pension fund Canada Caisse de Dépôt et Placement du Québec among its investors.
“Action for the benefit of the community is our top priority. To support that commitment and comply with our risk management framework, we have activated a provision in our Terms of Use to allow this process to take place. Celsius has valuable assets, and we are working diligently to meet our obligations.”
Celsius allows users to deposit their Bitcoin, Ethereum, and Tether and receive weekly interest payments. Depending on the period and the token, the platform offers an interest rate of 18% yearly. On its website, Celsius says 1.7 million people call “Celsius their home for crypto.”
The announcement comes after one of the brutal weekends in the crypto market that saw hundreds of millions of dollars in liquidations. At the time of publication, Bitcoin was trading at around $25,585 and Ethereum at $1,346, some of the lowest levels in over a year. Other well-known crypto projects, including Solana, BNB, and FTT, have also shut down.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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