A representation of cryptocurrencies in this illustration taken January 24, 2022. REUTERS/Dado Ruvic/Illustration
June 13 (Reuters) – Cryptocurrency lending firm Celsius Network will suspend withdrawals and inter-account transfers due to “extreme market conditions,” the company said on Monday in the latest sign of pressure in the crypto industry.
Bitcoin extended previous declines after Celsius announcement, falling more than 6% to as low as $24,888, an 18-month low. Ether, the world’s second-largest cryptocurrency, fell more than 8% to $1,303, its lowest since March 2021.
“We are taking these necessary actions … to stabilize liquidity and operations while taking steps to preserve and protect assets,” the company said in a blog post.
“Additionally, customers will continue to earn rewards during the hiatus, consistent with our commitment to our customers.”
Celsius Network, which raised $750 million in funding late last year, is a major player in crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company and lends cryptocurrencies to earn a return.
As of May 17, the company had processed $8.2 billion in loans and had $11.8 billion in assets, according to its website.
It said in August last year that it had more than $20 billion in assets.
As crypto lending has grown into a bigger business, the sector has come under regulatory scrutiny, particularly in the US. Read more
Crypto markets have been under pressure over the past few months, falling along with other so-called risky assets as interest rates have risen around the world.
Price declines have also been caused and contributed to by the collapse of some crypto projects. Most notable was the decline in stablecoin TerraUSD, which broke through its dollar peg and plummeted in value last month, shaking the crypto industry. Continue reading
Reporting by Abinaya Vijayaraghavan in Bengaluru and Alun John in Hong Kong; Edited by Bradley Perrett
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