Cryptocurrency lending firm Celsius (CRYPTO: CEL) says it is pausing all withdrawals, swaps and transfers between accounts.
What Happened: Celsius said in a statement late Sunday it is taking the steps “due to extreme market conditions.”
“We are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” the firm said.
Celsius said while it understands the news is “difficult” it believes it is the best decision. It said it was working to “protect and preserve assets” to meet its obligations.
“Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible.”
See Also: Best Crypto Debit Cards
Why It Matters: The Block Crypto's Frank Chaparro had earlier tweeted that there were rumors about Celsius’ ability to support withdrawals “swirling around crypto OTC desks.”
It’s actually really brutalInternet entrepreneur Nic Carter tweeted “it’s so over” and shared an email a Twitter (NYSE:TWTR) user received from Celsius.If Celsius has weeks worth of runway
That’s very bad for the space
— Frank Chaparro (@fintechfrank) June 12, 2022
it's so over https://t.co/dDOasHinJlCelsius operates on Ethereum’s (CRYPTO: ETH) network. The CEL token was down 55% to $0.155 at press time and the Ethereum chart suggests the second-largest cryptocurrency's market price reacted to the news.— nic carter (@nic__carter) June 13, 2022
ETH dropped 8% to $1,351.84 at the time of writing.
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