The crypto company Celsius stops all transfers, withdrawals when the markets fall

A representation of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS / Dado Ruvic / Illustration

June 13 (Reuters) – The cryptocurrency lending company Celsius Network will stop 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 its previous fall after Celsius’ announcement, falling more than 6% to as low as $ 24,888, a low of 18 months. Ether, the world’s second largest cryptocurrency, fell more than 8% to $ 1,303, the lowest since March 2021.

“We are taking this necessary action … to stabilize liquidity and operations while taking steps to preserve and protect assets,” the company said in a blog post.

“Furthermore, customers will continue to earn rewards during the break in line with our commitment to our customers.”

Celsius Network, which raised $ 750 million in financing late last year, is a significant player in cryptocurrency. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lend cryptocurrencies to make money.

As of May 17, the company had processed loans worth $ 8.2 billion and had $ 11.8 billion in assets, according to the website.

It said in August last year that it had more than $ 20 billion in assets.

While cryptocurrencies have become increasingly important, the sector has come under regulatory scrutiny, especially in the United States. read more

The crypto markets have been under pressure in recent months, and coincided with other so-called risk assets as interest rates have risen around the world.

Price falls have also both been caused by and contributed to the collapse of some crypto projects. Most notable was the fall of the stablecoin TerraUSD, which last month broke the dollar and collapsed in value, shaking the crypto industry. read more

Reporting of Abinaya Vijayaraghavan in Bengaluru and Alun John in Hong Kong; Edited by Bradley Perrett

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