Crypto firm Celsius Network halts all withdrawals as it faces liquidity crisis

Crypto lending service Celsius Network on Monday announced the halt on the withdrawals, swaps, and transfers between accounts due to extreme market conditions.

The company blog post stated that "We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations."

The blog post further stated that the company was taking this action. "We are taking this necessary action for the benefit of our entire community in order to stabilise liquidity and operations while we take steps to preserve and protect assets. Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers. We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilising liquidity and restoring withdrawals, swap, and transfers between accounts as quickly as possible."

Previously, the firm had banned new transfers from non-accredited investors on its US platform. On Friday, its digital token CEL dropped by approximately 20 percent and the Celsius coin, like Terra Luna, is part of a network that includes traditional finance (trad-fi) services including lending out crypto assets and earning interest on crypto assets.

Earlier, there were speculations around the firm for selling staked ETH (stETH) in large quantities in order to reestablish liquidity for its customers withdrawals.