Celsius Pauses Customer Operations

Celsius Pauses Customer Operations

13.06.2022 09:55
by Maksym Prykhodko
1 min read

The crypto lender Celsius announced that it is pausing customer withdrawals, transfers, and swaps. This was done to stabilize liquidity, so that the lender can honor its withdrawal obligations in the future.

Celsius’ CEL token quickly plummeted by 70%. It now amounts to $0.15, according to CoinMarketCap. However, Celsius’ customers will keep accruing rewards despite the pause.

Celsius functions by lending out its customers’ crypto deposits, and offering the customers high yield returns for their deposits. However, many regulators have equaled these yield returns to unregistered securities offerings. Thus, four U.S. states (Texas, New Jersey, Kentucky, and Alabama) sent cease-and-desist letters to Celsius by last September.

Celsius’ competitor BlockFi was able to reach a $100 million settlement with the U.S. Securities and Exchange Commission (SEC). BlockFi then agreed to register its investment products so that they can be approved by SEC. However, Celsius is yet to do the same.

Author

  • Maksym has denied the existence of crypto as an asset for 3 years when he was working with standard financial instruments. Became Head of Treasury. Won the best bank employee award and left the bank for cryptocurrency exchange the next day. Got a second university degree, but that didn’t stop him from studying finance yet. Combines fiat and crypto experience to be as objective as possible in general matters. His dream is to be interviewed by Bloomberg.

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