Celsius Seeks More Time to Stabilize Liquidity after Withdrawal Freeze

After freezing deposits last week, the crypto lending platform Celsius Network Ltd. announced in a blog post that it would need more time to establish its liquidity and operations. Celsius, one of the largest crypto lenders, has struggled to obtain capital in a shaky digital-assets market beset by increasing interest rates, a lack of liquidity, and last month’s Terra blockchain failure. Please find our latest note to the @CelsiusNetwork community here https://t.co/uIoaXbmeF2 — Celsius (@CelsiusNetwork) June 20, 2022 “We want our community to know that our objective continues stabilizing our liquidity and operations,” Celsius said in its blog on Monday. “This process will take time.” In addition, Twitter Spaces and Ask Me Anything, or AMAs in crypto parlance, have been suspended by the company “to focus on overcoming these unprecedented obstacles,” according to the post. Celsius Crisis The fall in crypto markets, which has wiped 70% off the market value of the two most valuable tokens, Bitcoin and Ether, was accelerated by the crisis at Celsius, as investors feared liquidations and a liquidity constraint. Due to “extreme market conditions,” cryptocurrency lending firm Celsius Network halted withdrawals and transfers between accounts last week. “We’re taking this decision today to put Celsius in a better position to honour its withdrawal obligations over time,” the platform said in a note on its website, adding that users will c...