Celsius, a cryptocurrency lending company, came under fire earlier today when some of its clients complained about being unable to withdraw their funds.
According to CoinMarketCap data, the price of the native CEL cryptocurrency has dropped by more than 31% in the last 24 hours. It was as low as $1.03 earlier today.
Celsius Network CEO Alex Mashinsky went on Twitter to convince customers about withdrawal issues, assuring them that their funds are secure.
Bitcoin, the most valuable cryptocurrency, fell to a new 52-week low of $29,011 today. The collapse of Terra’s LUNA governance token and its UST stablecoin caused the market meltdown. The failure of one of the largest cryptocurrency projects has an impact on the cryptocurrency industry overall.
On the other hand, Mashinsky maintains that Celsius has sustained considerable market volatility without facing significant losses. He highlighted the company’s risk management procedures, which are intended to safeguard clients’ investments.
On Wednesday, rumours circulated that Celsius, together with Jane Street Capital and Jump Trading, was about to bail out Terra. Mashinsky, on the other hand, has emphatically denied his company’s participation.
Celsius updated its “Risk Disclosures” messaging last month to warn clients that its native CEL cryptocurrency is subject to significant regulatory concerns.
