Celsius has announced that it has paused all withdrawals on its platform from the early hours of Monday. The lending platform which is used by more than 1.7 million people in the crypto space made this announcement following the recent bloodbath. Celsius’ decision to do this has naturally been received badly by its user base who now find themselves unable to withdraw their funds and has given rise to speculations regarding how much liquidity it possesses.
Celsius On Hold
As per an email that was sent out to users, Celsius admitted that current market conditions had played a large role in its decision to freeze withdrawals. Interestingly, the platform had also paused all trading activities, meaning that the whole lending platform is currently on hold. Users of Celsius cannot do anything presently other than watch and hope this freeze is lifted soon.
Celsius noted in its post that it was doing this in the interest of the community. A clause in its Terms of Use had been activated for this to happen. “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,” Celsius said. “Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers.”
The lending platform added that it was working on ways to restore withdrawals, swaps, and transfers for its users. However, there is no timeframe in mind for how long this might take and if Celsius will be able to pay back its users.
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