What happens when you can no longer access your cash?
Bitcoin plunges as Caisse-backed crypto company Celsius Network freezes customer withdrawals, transfers
Celsius Network Ltd., which for years touted itself as the “world’s leading crypto earning and lending platform,” is freezing all withdrawals and transfers between its 1.7 million customers, as tokens such as bitcoin continue to plunge and investors rush to exit the digital asset market.
Citing “extreme market conditions,” the New Jersey-based company said in a blog post that a risk management clause about withdrawal obligations in its terms-of-use agreement has been activated indefinitely. That means customers are unable to pull their money out of Celsius, as the unregulated crypto exchange has decided to halt all transactions. As of May, the company held more than US$11-billion in assets.
“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” Celsius said late Sunday. “Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap and transfers between accounts as quickly as possible.”
Major cryptocurrencies tumbled on Monday following the Celsius announcement. Bitcoin touched an 18-month low of $30,349. Ether dropped as much as 16 per cent to $1,585, its lowest price in two years.