Celsius Network Pauses All Withdrawals

Due to "extreme market conditions," leading cryptocurrency lender Celsius Network has announced a halt to all withdrawals, swaps, and transfers between accounts. The decision resulted in a nearly 55% drop in the price of its digital token 'CELL,' which fell to as low as 19 cents.

"We are taking this action today to put Celsius in a better position to honour its withdrawal obligations over time," the crypto lender said late Sunday in a statement. Celsius Network is a Blockchain-powered lending platform that can be accessed via a free mobile app.

The company said, "Acting in the interest of our community is our top priority. In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place. Celsius has valuable assets and we are working diligently to meet our obligations."

According to the company, the decision was made to stabilise liquidity and operations "while we take steps to preserve and protect assets." In November of last year, Celsius was valued at $3.25 billion. According to its website, the CEL token promises "actual financial rewards," with up to 30% extra weekly returns. It's unclear what caused the most recent drop. Terra's failure has reduced demand for high-yielding lending instruments.