The volatile cryptocurrency market was further hurt when Celsius, a contentious platform for lending cryptocurrencies, announced on Monday that it was halting all withdrawals. The company said it kept the conversation open with officials and planned to continue working with them on the suspension after suspending the withdrawal of users, exchanges, and one-week transfers. In order to “focus on managing these unprecedented barriers,” Celsius also suspended interviews on Twitter and AMA sessions.
Although Celsius is silent, news and rumours about the past, present, and future of the company have spread on social media and in the media. Short community-led pressure la Gamestop is one of the most exciting prospects.
The Terra fiasco did not blow the whistle, and another problem rocked the cryptocurrency markets. A new cryptocurrency launch that will face controversy is a multi-billion dollar loan and a critical Celsius platform.
Celsius’ motto reads, “An economy where financial independence does not come at a price.” The company halted consumer withdrawals on June 12, 2022, when the company drew more than $25 billion since opening its doors in 2017.
Earlier, however, there were indications that Celsius was abusing money. Celsius reportedly lost more than $50 billion in cryptocurrency to BadgerDAO’s $120 million robbery in December 2020, making them the biggest victim of a single attack. By creating a remBADGER token, BadgerDAO used a restitution program to compensate victims for their loss.
The remaining losses will be credited with the distribution of REmBADGER over the next two years, guaranteed by token holders. All future payments will be lost if the token is cancelled. However, on March 18, 2022, Celsius withdrew the total amount of remBADGER granted to him, valued at approximately $2.1 million during the contract period.
The Celsius Network realised its mistake and attempted to convince the Badger team to disregard the BIP-80 decision’s rules in order to make a new deposit. Unfortunately for Celsius, BadgerDAO took the idea of “code code” seriously and the proposal failed.
Read more: SEC initiates its probe against Celsius over its decision to withdraw customer redemptions
