Crypto firm Celsius pauses all transfers and withdrawals between accounts

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A rep­re­sen­ta­tions of cryp­tocur­ren­cies in this illus­tra­tion tak­en, Jan­u­ary 24, 2022. REUTERS/Dado Ruvic/Illustration

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June 12 (Reuters) — Cryp­tocur­ren­cy lend­ing firm Cel­sius Net­work will pause with­drawals and trans­fers between accounts due to “extreme mar­ket con­di­tions”, the com­pa­ny said on Mon­day, in the lat­est sign of pres­sure in the cryp­to industry.

Bit­coin extend­ed ear­li­er declines after Cel­sius’s announce­ment, falling more than 6% to as low as $24,888, an 18-month low. Ether , the world’s sec­ond-largest cryp­tocur­ren­cy, dropped more than 8% to $1,311, its low­est since March 2021.

“We are tak­ing this nec­es­sary action … in order to sta­bi­lize liq­uid­i­ty and oper­a­tions while we take steps to pre­serve and pro­tect assets,” the com­pa­ny said in a blog post.

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“Fur­ther­more, cus­tomers will con­tin­ue to accrue rewards dur­ing the pause in line with our com­mit­ment to our customers.”

Cel­sius Net­work, which raised $750 mil­lion in fund­ing late last year, is a sig­nif­i­cant play­er in cryp­to lend­ing. It offers inter­est-bear­ing prod­ucts to cus­tomers who deposit their cryp­tocur­ren­cies with the com­pa­ny, and lends out cryp­to cur­ren­cies to earn a return.

The sec­tor has come under reg­u­la­to­ry scruti­ny how­ev­er, par­tic­u­lar­ly in the U.S. read more 

Cryp­to mar­kets have been under pres­sure in recent months, falling along­side oth­er so-called risk assets as inter­est rates have risen around the world.

Price falls have also both been caused by and con­tributed to the col­lapse of some cryp­to projects, most notably the col­lapse of sta­ble­coin TerraUSD.

Ter­raUSD last month broke its dol­lar peg and col­lapsed in val­ue, rock­ing the cryp­to indus­try. read more 

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Report­ing by Abi­naya Vija­yaragha­van in Ben­galu­ru and Alun John in Hong Kong; Edit­ing by Bradley Perrett

Our Stan­dards: The Thom­son Reuters Trust Principles.

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