On Monday, June 13, 2022, the crypto economy dropped below the $1 trillion region, as a great majority of crypto assets have lost between 10% to 25% during the last 24 hours. Meanwhile, the crypto community has been discussing the cryptocurrency lending application Celsius as rumors of insolvency have been swirling. On June 12, around 10:10 p.m. (ET) Celsius announced that it paused “all withdrawals, swaps, and transfers between accounts.”
Celsius Pauses Lending Application’s Operations, Crypto Community Talks About a Possible Insolvency and Liquidations
On Sunday evening, the lending firm Celsius published a tweet that detailed specific operations on the platform that were paused. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swaps, and transfers between accounts,” Celsius revealed.
“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” Celsius added. The firm also published a blog post that explained Celsius was making moves to fix the situation.
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the Celsius blog post notes. “Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers.”
There are rumors that Celsius may be insolvent and speculation concerning the company’s money issues started well before the company paused operations. The Former CEO of The Block Crypto news publication, Mike Dudas, tweeted about the “demise of Celsius” the day before the firm stopped withdrawals.
“I’m saddened by how many people are cheering on the demise of [Celsius Network],” Dudas tweeted. “I, along with many others, counseled people not to put their funds with that risky business. However, many did, and a large number of retail folks look like they are soon to be rekt. We all lose.”
However, the founder and CEO of Celsius, Alex Mashinsky, seemed to be offended by Dudas’s tweet and responded. “Mike do you know even one person who has a problem withdrawing from Celsius?” Mashinsky asked. “Why spread FUD and misinformation? If you are paid for this then let everyone know you are picking sides otherwise our job is to fight Tradfi together…”
Furthermore, there’s speculation that roughly $500 million of Celsius’…
Click Here to Read the Full Original Article at Bitcoin News…
