Crypto Lending platform Celsius Network announced on Monday to pause all withdraws and transfers between accounts due to extreme market conditions.
“In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place,” the official company blog reads.
The platform, one of the biggest crypto lenders, said customers can continue to accrue rewards during the pause in line, reiterating that the network is “taking necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the blog post added.
Reportedly, up to 50,000 Ethereum (ETH) and 3,500 Wrapped Bitcoin (WBTC) were being moved to an address located in FTX a few hours ago before the suspension, according to an alert citing King Data’s Etherscan. The transfer is worth around $63.64 million and $864.99 million respectively based on the current price.
The announcement has come during one of the many bumpy weekends in the crypto market. Crypto space was suffering from multiple bearish events recently, including the collapse of LUNA and UST events.
According to the latest announcement, the Celsius token (CEL) once tumbled 60% within an hour, reaching the bottom at $0.1554. It is now trading at around $0.1883 during the Asia trading section.
Furious sentiments are being shared among investors, some customers are blaming Celsius for having no response to the request of withdrawing tokens and questioning its reserve if it might result in bankruptcy.
According to Blockworks, Celsius was valued at $3.35 billion when it closed its “oversubscribed” Series B financing to $750 million last November. The company had processed $8.2 billion worth of loans and had $11.8 billion in assets, its website showed.
In April, Blockchain.News reported that the Network has stopped paying interests to unaccredited investors, meaning new retail investors are not able to earn interests by joining its program.
The network remains full of uncertainty ahead in recovering its price and winning confidence among investors.
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