Celsius CEO Alex Mashinsky.
Piaras Ó Mídheach | Sportsfile for Web Summit | Getty Images
Celsius, a controversial cryptocurrency lending platform, said Monday it was pausing all withdrawals, causing more pain in the fragile crypto market.
Celsius is one of the largest players in the nascent crypto lending space, with more than $8 billion lent out to clients and almost $12 billion in assets under management as of May. The group offers users higher-than-average interest rates on their deposits.
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” the company said in a memo to clients on Monday.
The move has raised concerns about Celsius’ solvency. The firm has seen the value of its assets more than halve since October, when it handled $26 billion in client funds. Celsius’ cel token has also erased 97% of its value in the same timeframe. Celsius is the biggest holder of cel.
“Acting in the interest of...
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