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June 13, 2022

Celsius Network Suspends Services

Following a notice that the network has suspended withdrawals, swaps, and transfers between clients, users of the crypto lending site Celsius are left biting their nails. So that “Celsius can better fulfill over time its withdrawal commitments,” this was done. “As part of our risk management system, we have triggered a section in our Terms of Use that allows this procedure to take place.”

On June 13, only seven days after the whole crypto market lost more than $250 billion in value, Bitcoin announced that it would be shutting down.

Our goal is to safeguard and maintain our assets so that we can satisfy our customers’ commitments,” the notification stated in part.

Recall that in May, Celsius CEO Alex Mashinsky was forced to blame “shadowy Wall Street opportunists” for the platform’s financial woes.

Within the span of 24 hours Celsius (CEL) has plummeted by almost 55% and is presently trading at $0.19.

Rumors of a cash problem and impending collapse had been swirling around the project prior to the announcement. When Celsius seemed to be dealing with this situation on June 12, it looked that they were transferring $247 million worth of Wrapped Bitcoin to FTX.

As a result of the project’s huge ETH and wrapped Bitcoin transfers, and other crypto-asset transfers, there have been rumors that things are not going well inside the company. Additionally, users’ withdrawals and transfers have been halted.

Many Celsius users and critics have taken issue with the company’s handling of its cash after the demise of the Anchor protocol. Numerous others have already raised the alarm, warning that another crypto market crisis within one month after Terra’s demise might have catastrophic consequences.

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Celsius’s DeFi wallet started moving extraordinary amounts of tokens at about 6:00 p.m. E.T. on June 12th, according to a number of tweets. In order to collect interest on deposits, Celsius started pulling its Wrapped Bitcoin (WBTC) from the Aave lending and staking platform. For an unknown reason, almost $247 million in wrapped Bitcoin has been transferred to the FTX exchange after a series of transactions.