Celsius Asked Users to Have More Time to Fix the Problem After Stopping Withdrawal

06/23/2022By: C, Fiona

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Takeaway

  • Celsius, a troubled cryptocurrency lending company, asked users to give it more time to stabilize its liquidity and business.
  • Because of “extreme market conditions”, Celsius stopped withdrawing money from customers last week.
  • The cryptocurrency market has been wiped out of billions of dollars in the past few weeks, and bitcoin fell below the $20000 mark over the weekend, hitting some companies.

Celsius, a troubled cryptocurrency lending company, asked users to give it more time to stabilize its liquidity  after the market crash led the company to halt customer withdrawals.

The cryptocurrency market has been wiped out of billions of dollars in the past few weeks, and bitcoin fell below the $20000 mark over the weekend.

Celsius provides high returns to users who deposit cryptocurrencies in the company, lending them to other institutions for profit.

But last week, the company stopped withdrawing money from customers due to “extreme market conditions”.

On Monday, Celcius asked customers to have more time to handle the situation.

“We want our community to know that our goal is still to stabilize our liquidity. This process will take time,” the company said in a blog post.

“As a priority since the establishment of our company, we have maintained an open dialogue with regulators and officials. We plan to continue to cooperate with regulators and officials on this pause and our company’s determination to find solutions.”

Celsius said it would suspend Twitter Spaces and Ask Me Anything, or AMAs, “to focus on managing these unprecedented challenges and to seek to fulfill our responsibilities to the community.”

Celsius was impacted by a series of factors, making it on the verge of potential bankruptcy.

The market crash has eroded the value of its assets. A large amount of investment in a token called staked ether further exacerbated the liquidity problem of Celsius.