On Monday, June 13, 2022, the crypto market fell below the $1 trillion mark, with the vast majority of crypto assets losing 10% to 25% in the previous 24 hours. Meanwhile, the cryptocurrency community has been discussing the cryptocurrency lending application, Celsius, amid concerns of bankruptcy. Celsius reported that “all withdrawals, swaps, and transfers between accounts” had been halted.
Celsius, a blockchain based lending platform, tweeted on Sunday evening about certain activities on the platform that had been suspended. “Due to extraordinary market circumstances,” Celsius said, “we are announcing today that Celsius is stopping all withdrawals, swaps, and transfers between accounts.”
“We are taking this move now to put Celsius in a stronger position to meet its withdrawal commitments over time,” Celsius said. Celsius also issued a blog post explaining how it was working to resolve the matter.
According to the Celsius blog post, “We are taking this essential move for the sake of our whole community in order to stabilise liquidity and operations while we take actions to maintain and safeguard assets.” Furthermore, in keeping with our commitment to our consumers, customers will continue to accumulate awards throughout the break.”
There is speculation that Celsius may be bankrupt, and conjecture about the business’s financial problems began long before the company ceased operations. Mike Dudas, the former CEO of The Block Crypto news magazine, tweeted about the “demise of Celsius” the day before the business ceased accepting withdrawals.
