Celsius stops withdrawals, CEL token collapses

Alex Dovbnya

Celsius has stopped all withdrawals due to extreme market conditions

Popular cryptocurrency lending platform Celsius has halted all withdrawals, according to a Announcement posted earlier this Monday.

The price of the native Celsius (CEL) token plunged more than 50% on the news.

It’s unclear when users will be able to withdraw their funds, but the company says restoring this functionality is the “ultimate goal.”

Celsius has also disabled swaps and transfers between different accounts due to market conditions.

Prior to the announcement, the lending platform withdrew approximately $250 million from the decentralized funding protocol Aave and sent it to the FTX exchange. The reason behind such a move has not been specified, sparking more speculation within the community.

On June 11, Celsius CEO Alex Mashinsky said, claimed that rumors of users not being able to withdraw funds were “FUD and misinformation”. In a separate tweet, Mashinsky wrote that he had many enemies because he was winning.

As reported by U.Today, Celsius users began to complain en masse about withdrawal issues after Terra’s collapse in early May. However, the company assured its customers that their money was safe.

“It’s over. The Celsius Ponzi scheme has collapsed,” said Hindenburg Research founder Nathan Anderson. The head of the infamous short-selling company also recalls how the company initially declined to answer whether or not the company’s former chief financial officer, Yarom Shalem, had been arrested in Israel last November.

The Celsius news has exacerbated the market routine, with Bitcoin, the largest cryptocurrency, revisiting the $25,000 level.

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