Crypto Lending Firm Halts Withdrawals, Urges Customers To Give It More Time

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Alex Mashinsky CEO of Celsius Network
Alex Mashinsky CEO of Celsius Network

Embattled cryptocurrency lending firm Celsius has urged users to give it more time to stabilize liquidity and operations after the market downturn caused the platform to freeze withdrawals for its customers.

Billions of dollars were wiped from the cryptocurrency market in the last few weeks, with bitcoin plunging below the $20,000 mark over the weekend. Celsius offers high yields to users who deposit their crypto with the company by lending it out to other institutions to generate a profit.

However, the firm halted withdrawals for customers last week, due to “extreme market conditions.” On Monday, Celcius asked customers for more time to deal with the situation.

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“We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time,” the company said in a blog post.

“As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials. We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”

Celsius said it would pause Twitter Spaces and Ask Me Anything, or AMAs, “to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community.”

While a big exposure to a token called staked ether, or stETH, has furthered Celsius’s liquidity issues. The crypto market crash has sent the value of the assets through the mayhem.