Crypto firm Celsius pauses all transfers, withdrawals as markets tumble

Cryptocurrency representation of this figure taken on January 24, 2022.Reuters / Daddle Bitch / Illustration

June 13 (Reuters)-Cryptocurrency lender Celsius Network suspends withdrawals and transfers between accounts due to “extreme market conditions,” the company said on Monday with the latest signs of crypto industry pressure. Stated.

Bitcoin has widened its previous decline since the announcement of Celsius, dropping more than 6% to its 18-month low of $ 24,888. Ether, the world’s second largest cryptocurrency, fell more than 8% to $ 1,303, the lowest since March 2021.

“We are taking steps to protect and protect our assets, while taking these necessary steps to stabilize liquidity and operations,” the company said. Said In a blog post.

“In addition, you will continue to receive benefits during the suspension, in line with your commitment to you.”

With $ 750 million in funding at the end of last year, Celsius Network is an important player in cryptocurrency lending. It provides a favorable product to customers who deposit their cryptocurrencies in the company, and lends cryptocurrencies for profit.

As of May 17, the company processed $ 8.2 billion worth of loans and had $ 11.8 billion in assets, according to the website.

this Said Last August, we had over $ 20 billion in assets.

Cryptocurrency lending has become an increasingly large business, but this sector is under regulatory supervision, especially in the United States. read more

The crypto market has been under pressure in recent months and has fallen alongside other so-called risk assets as interest rates have risen around the world.

Price declines have also been caused and contributed to the collapse of several crypto projects. Most notable was the plunge in Stablecoin TerraUSD, which broke the dollar peg last month, smashed its value and rocked the crypto industry. read more

Reported by Abinaya Vijayaraghavan in Bangalore and Alun John in Hong Kong. Edited by Bradley Perrett

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