Crypto lending firm Celsius said Sunday that it would pause withdrawals on its platform, citing market conditions as the price of Ether and other cryptocurrencies tumbled.
The firm, which sources told The Block earlier in the week only had a few more weeks worth of financial resources to support customer withdrawals, took to Twitter to announce the suspension of withdrawals, transfers, and swaps, noting:
“@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community.”
Led by Alex Mashinsky, the firm reportedly had about $12 billion in customer assets as of May across 1.7 million users, as reported by the Financial Times.
In a note to clients, Celsius added:
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals…We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”
The price of Celsius’s native token Celsius token fell sharply on the news, falling 45% to $0.21 per coin.
The development represents the latest sign of market stress in the crypto sector. The price of ether tumbled below $1,400 a coin Sunday evening.
Last week, The Block reported that BlockFi, another lending firm, was raising a round at a valuation of $1 billion—well below the $5 billion valuation it was reportedly raising at in 2021.