Crypto Lender Celsius Halts Withdrawals Amid Market Turmoil
Celsius pauses all withdrawals, swaps, and transfers due to extreme market conditions while it works to stabilize liquidity. The announcement causes the native CEL token to plummet over fifty percent.
Crypto lending platform Celsius pauses all withdrawals, swaps, and transfers as it faces extreme market conditions. The company states that its primary focus is to protect and preserve assets to meet customer obligations, though it does not provide a specific timeline for when services will resume. This freeze prevents users from accessing their funds while the firm explores various options to stabilize its liquidity.
The immediate market reaction is severe, with the price of Celsius's native CEL token dropping over fifty percent following the announcement. Reports also indicate that Celsius transfers approximately 104,000 ETH and 9,500 WBTC to the FTX exchange over the past three days. Additionally, the company recently tells nonaccredited investors that they can no longer transfer funds.
This suspension adds to a growing list of troubles for the crypto lender, including recent leadership changes and regulatory scrutiny. Law enforcement entities already issue cease-and-desist orders against the company, and its former chief financial officer faces legal issues following an arrest by Israeli police. Celsius acknowledges that the stabilization process takes time and warns customers to expect further delays.