Celsius, a controversial cryptocurrency lending platform, said it was halting all withdrawals on Monday, adding more pain to the fragile cryptocurrency market.
Celsius is one of the most prominent players in the burgeoning crypto lending space. With more than $8 billion in customers and nearly $12 billion in assets under management as of May. The Group, which offers consumers above-average interest rates on their deposits. Is essentially the equivalent of a crypto bank but without the stringent insurance requirements faced by traditional lenders.
“Due to extreme market conditions. We are announcing today that Celsius is suspending all withdrawals, exchanges, and transfers between accounts,” the company said in a note to customers on Monday.
The move raises concerns about Celsius’s solvency. The company had had more than half the value of its assets since October, when it managed $26 billion in client funds. The Celsius token also erased 97% of its value during the same period.
Celsius is the largest holder of the Cel, a symbol that encourages people to buy to win prizes and discounts on loan interest.
“Acting in the interests of our community is our top priority,” Celsius said. “To fulfill this commitment and comply with our risk management framework. We have activated a clause in our Terms of Service that allows this process. Celsius is a valuable asset, and we are working hard to fulfill our commitments.”
Celsius was not immediately available to comment on the situation when he contacted CNBC.
Bitcoin and other cryptocurrencies have made the news. According to Coin Metrics, the world’s largest digital asset fell 15% to $23,325. Falling to an unprecedented low since December 2020. Ether was down 17% to $1,225, while the Celsius token was down more than 38%.