Celsius cryptocurrency suspends all transactions and withdrawals when markets fall

Representation of cryptocurrencies in this chart taken on January 24, 2022. REUTERS / Dado Ruvic / Illustration

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June 13 (Reuters) – Celsius Network, a cryptocurrency lender, said on Monday it was suspending withdrawals and transactions between accounts due to “high market conditions”, the latest sign of pressure on the crypto industry.

Bitcoin extended its previous decline after the Celsius announcement, falling more than 6% to $ 24,888, its lowest level in 18 months. Ether, the world’s second-largest cryptocurrency, was down more than 8% at $ 1,303, the lowest level since March 2021.

“We are taking this necessary step … We are taking steps to protect and secure assets to stabilize cash flow and operations,” the company said. Said In a blog post.

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

The Celsius Network, which raised $ 750 million at the end of last year, is a significant contributor to crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends cryptocurrencies to earn income.

As of May 17, the company had processed $ 8.2 billion in debt and $ 11.8 billion in assets on its website.

It Said It had assets of more than $ 20 billion in August last year.

As crypto lending has become increasingly big business, the sector is under regulatory scrutiny, especially in the United States Read More

See also  Bitcoin is recovering after falling on news that Tesla sold 75% of its shares

Crypto markets have been under pressure in recent months, with interest rates rising around the world falling along with so-called other risk assets.

The fall in prices was also due to the collapse of some crypto schemes. The fall of Staplecoin Terroyust is most significant, as it broke its dollar peg last month and plunged in value, shaking the crypto sector. read more

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Report by Abhinaya Vijayaragavan in Bangalore and Alun John in Hong Kong; Bradley Beret editing

Our standards: Thomson Reuters Trust Principles.

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