Crypto firm Celsius Network will pause withdrawals and transfers between accounts due to “extreme market conditions”, the company said.
Cryptocurrency lending firm Celsius Network will pause withdrawals and transfers between accounts due to “extreme market conditions”, the company said on Monday, in the latest sign of pressure in the crypto industry.
Bitcoin extended earlier declines after Celsius’s announcement, falling more than 6 percent to as low as $24,888, an 18-month low. Ether, the world’s second-largest cryptocurrency, dropped more than 8 percent to $1,311, its lowest since March 2021.
“We are taking this necessary action … in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the company said in a blog post.
“Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers.”
Celsius Network, which raised $750 million in funding late last year, is a significant player in crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company and lends out cryptocurrencies to earn a return.
However, the sector has come under regulatory scrutiny, particularly in the U.S.
Crypto firm markets have been under pressure in recent months, falling alongside other so-called risk assets as interest rates have risen worldwide.
Price falls have also both been caused by and contributed to the collapse of some crypto projects, most notably the collapse of the stable coin TerraUSD.