Presentation of cryptocurrencies in this illustration, made on January 24, 2022. REUTERS / Dado Ruvic / Illustration
Register now for FREE unlimited access to Reuters.com
I’m registering
June 13 (Reuters) – Cryptocurrency lending firm Celsius Network will pause withdrawals and transfers between accounts due to “extreme market conditions”, the company said Monday, as the latest sign of pressure in the crypto industry.
Bitcoin extended earlier declines after the announcement of Celsius, falling more than 6% to $ 24,888, the lowest level in 18 months. Ether, the world’s second-largest cryptocurrency, fell more than 8 percent to $ 1303, its lowest level since March 2021.
“We are taking this necessary action … to stabilize liquidity and operations as we take steps to preserve and protect assets,” the company said in a blog post.
Register now for FREE unlimited access to Reuters.com
I’m registering
“In addition, customers will continue to earn rewards during the break in line with our commitment to our customers.”
Celsius Network, which raised $ 750 million in funding late last year, is an important player in crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends cryptocurrencies to earn a return.
As of May 17, the company had processed $ 8.2 billion in loans and had $ 11.8 billion in assets, according to its website.
In August last year, the company said it had assets of more than $ 20 billion.
As crypto lending becomes a growing business, the sector is subject to regulatory scrutiny, especially in the United States. read more
Crypto markets have been under pressure in recent months, falling along with other so-called risky assets as interest rates have risen around the world.
The fall in prices was also caused and contributed to the collapse of some crypto projects. Most notable was the decline in TercoUSD, which last month broke the dollar and collapsed in value, shaking the crypto industry. Read more
Register now for FREE unlimited access to Reuters.com
I’m registering
Report by Abinaya Vijayaraghavan in Bengaluru and Alun John in Hong Kong; Edited by Bradley Peret
Our standards: Thomson Reuters’ principles of trust.
Add Comment