Cryptocurrency lending company Celsius Network will pause withdrawals and transfers between accounts due to “extreme market conditions,” the company said Monday, in the latest sign of pressure in the crypto industry.
Bitcoin extended past declines after Celsius’s announcement, falling more than 6 percent to just $24,888, an 18-month low. Ether, the world’s second-largest cryptocurrency, fell more than 8 percent to $1,311, its lowest level since March 2021.
“We are taking this necessary action … to stabilize liquidity and operations, while taking steps to preserve and protect assets,” the company said in a blog post.
“In addition, during the intermission, customers will continue to collect rewards in line with our commitment to our customers.”
Celsius Network, which raised $750 million in funding late last year, is a major player in crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends cryptocurrencies to earn returns.
However, the industry is overseen by regulatory authorities, especially in the US
Crypto markets have been under pressure in recent months, coinciding with other so-called risk assets as interest rates have risen across the globe.
Price drops have also been both caused by and contributed to the collapse of some crypto projects, most notably the collapse of stablecoin TerraUSD.
TerraUSD broke its dollar peg last month and plunged in value, rocking the crypto industry.