Crypto lender Celsius pauses withdrawals due to ‘extreme market conditions’
Celsius, a contentious cryptocurrency lending platform, announced on Monday that it was suspending all withdrawals, adding to the market's already-stressed state.
As of May, Celsius was one of the major players in the embryonic crypto lending market, with about $12 billion in assets under management and more than $8 billion in loans to clients
The firm is effectively the crypto version of a bank, offering consumers higher-than-average interest rates on their accounts
while avoiding the onerous insurance requirements that regular lenders face.
"Today, we are announcing that Celsius is stopping all withdrawals, Swaps, and transfers between accounts due to extraordinary market conditions,
Concerns about Celsius' solvency have been raised as a result of the move
Since October, when it managed $26 billion in customer funds, the firm's assets have more than halved in value.
In the same timeframe, the cel token has lost 97 percent of its value. Celsius is the largest holder of cel
A cryptocurrency that it promotes customers to buy in order to gain prizes and lower lending rates.
"Celsius is taking aggressive steps to meet its duties to its consumers (the Celsius community) and has met those obligations to date."
A spokesman for Westcap did not respond to a request for comment right away.