BOILING POINT

Crypto Lender Celsius Blocks Withdrawals, Citing ‘Extreme Market Conditions’

News of the halt caused chaos for bitcoin and other cryptocurrencies.

Crypto lending platform Celsius announced Monday it was pausing all withdrawals citing “extreme market conditions.” The controversial company—which has lent out more than $8 billion and manages nearly $12 billion in assets as of May—has not announced a timeline for when withdrawals will resume. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” the firm wrote in a memo to clients. Some are now concerned about the solvency of the company, which made a name for itself by offering above-average interest rates on deposits. Its assets have more than halved in value since October 2021, when it controlled $26 billion of clients’ funds, and the value of its flagship cel token has also tumbled 97 percent in the same time. Bitcoin and other cryptocurrencies plummeted after Celsius’ announcement was made public.