{"id":7897,"date":"2022-06-14T14:42:21","date_gmt":"2022-06-14T14:42:21","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/06\/14\/crypto-lending-giant-celsius-halts-withdrawals\/"},"modified":"2022-06-14T14:42:23","modified_gmt":"2022-06-14T14:42:23","slug":"crypto-lending-giant-celsius-halts-withdrawals","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/06\/14\/crypto-lending-giant-celsius-halts-withdrawals\/","title":{"rendered":"Crypto lending giant Celsius halts withdrawals"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/6\/13\/23165401\/defi-cryptocurrency-celsius-network-pause-withdrawals<\/a>
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The Celsius Network, which is one of the largest crypto lenders, announced<\/a> Sunday night that it was \u201cpausing all withdrawals, Swap, and transfers between accounts.\u201d It has 1.7 million customers. <\/p>\n

The company\u2019s token, CEL, is trading at 23 cents as of this writing, according to CoinMarketCap<\/a>. That\u2019s a 92 percent decrease from April 8th, when CEL was worth $3. The token was worth nearly $7 a year ago. <\/p>\n

There have been questions about Celsius Networks\u2019 high yields<\/a>, its connections to failed stablecoin Terra<\/a>, and its reserves. The value of assets on its platform dropped by half to $12 billion in May, from $24 billion in December 2021. Between March and May, a billion dollars flowed out of the system, The Financial Times <\/em>reported<\/a>.<\/em><\/p>\n

In a June 7th blog post entitled \u201cDamn the torpedoes<\/a>,\u201d the company said, \u201cCelsius has the reserves (and more than enough ETH) to meet obligations, as dictated by our comprehensive liquidity risk management framework.\u201d<\/p>\n

That was then. On June 12th, an email to all customers started off like this:<\/p>\n

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Due to extreme market conditions, today 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.<\/p>\n<\/blockquote>\n

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