Crypto lender Celsius suspends withdrawals, locking up billions in user funds amid ‘extreme market conditions’

Reuters, June 13 - Celsius Network, a cryptocurrency lending firm, announced on Monday that it will halt withdrawals

and transfers between accounts owing to "extreme market conditions," the latest hint of pressure in the crypto industry.

Following Celsius's news, bitcoin fell more than 6% to a new low of $24,888, an 18-month low.

The world's second-largest cryptocurrency, Ether, fell more than 8% to $1,303, its lowest level since March 2021.

In a blog post, the firm stated, "We are taking this essential move... in order to stabilize liquidity and operations while we take actions to preserve and protect assets."

In addition, as part of our commitment to our consumers, customers will continue to accrue points throughout the break."

Celsius Network is a major player in crypto financing, having raised $750 million in funding late last year.

Customers who deposit cryptocurrencies with the company can get interest-bearing items, and it also lends out cryptocurrency for a profit.

As concerns about the platform's viability have grown, the value of Celsius' native CEL cryptocurrency has plummeted. According to statistics from Blockworks Research,

the token plunged more than 60% from $0.36 to $0.14 between 10pm and 11:30pm ET on Sunday, June 12. It's currently down almost 98% from its all-time high of over $8.00 just over a year ago.