Celsius Network, which has 1.7 million customers, said “harsh market conditions” have forced it to temporarily halt all withdrawals, crypto swaps and transfers between accounts.
“We are taking this necessary measure for the benefit of our entire community in order to stabilize liquidity and operations while taking steps to preserve and protect assets,” the company said in a blog post.
According to its website, the UK-registered company has about $3.7 billion in assets. pays interest on cryptocurrency deposits,
Binance, the world’s largest cryptocurrency exchange, suspended withdrawals on its bitcoin network for a few hours on Monday.
The company said it made the decision because some transactions were “stalled” and caused a backlog.
“We are still working on processing pending withdrawals to the Bitcoin (BTC) network, and they are expected to be completed within the next two hours,” the company said in a statement.
Ether, the second most expensive digital currency, is down 17% and has now lost about 75% of its value since November.
The so-called “stablecoins” – cryptocurrencies tied to the value of traditional assets – have also taken a hard hit. Tether, a popular stablecoin, broke its peg to the US dollar in May, breaking the view that it could act as a hedge against volatility.
TerraUSD, a riskier algorithm-based stablecoin that uses complex code to peg its value to the US dollar, collapsed in the same month, wiping out the savings of thousands of investors. The coin was valued at just over $18 billion in early May before it collapsed, according to data from CoinMarketCap.
Celsius Network did not say when it will allow customers to withdraw their deposits again, but that it only “will take some time”.
Meanwhile, governments are closely watching the fallout from the cryptocurrency crash and could act to protect investors.
“There are many risks associated with cryptocurrencies,” US Treasury Secretary Janet Yellen told the Senate last month. She said that her department is scheduled to issue a report in this regard.
– Julia Horowitz contributed to the report.
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