Celsius

Celsius CEO Alex Mashinsky. Piaras Ó Mídheach | Sportsfile for Web Summit | Getty Images. Celsius, a controversial cryptocurrency lending platform, said Monday ...

"We've been doing this for five years now, longer than anybody else," he said at the time. Just last week, the company said it had not had any issues meeting withdrawal requests. Celsius has valuable assets and we are working diligently to meet our obligations." The firm has seen the value of its assets more than halve since October, when it handled $26 billion in client funds. Ether dropped 8% to $1,329, while Celsius' cel token plunged more than 50%. Celsius' cel token has also erased 97% of its value in the same timeframe.

Bitcoin tumbled on Monday after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing "extreme" conditions, ...

So far, Celsius has chosen not to engage," said Nexo co-founder Antoni Trenchev. Celsius and crypto firms that offer services similar to banks are in a "grey area" of regulations, said Matthew Nyman at CMS law firm. Register now for FREE unlimited access to Reuters.com The collapse in May of the terraUSD and luna tokens also shook the industry. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

The crypto-lending firm Celsius Network halted withdrawals and transfers, amid an apparent liquidity crisis, as the price of Bitcoin plunged to pre-pandemic ...

On June 13, the crypto exchange Binance halted bitcoin withdrawals on the heels of the Celsius news, and the prices of Bitcoin and Ether fell 11% and 13% respectively in the past day amid an industry-wide sell-off. “Celsius is about to be inundated with subpoenas and enforcement actions,” he added. “It’s sad because if we just paid attention to the past, a lot of the harms here and losses could have been prevented.” In 2020, the crypto lender Cred went bankrupt after reportedly taking out bad loans. Celsius operates like an unregulated bank, enticing customers with staggeringly rates for deposits of cryptocurrencies, and then loaning out those deposits to other customers. Celsius, which promises high-yield returns on customer deposits, appears to be the latest crypto company to buckle under tightening financial conditions.

And this time there's a cautionary tale where even sophisticated bankers and pension funds were vulnerable to crypto's Fear Of Missing Out (FOMO) chasing ...

The staff flows from banks to fintech firms between 2020 and 2022 are revealing, such as the 37 Goldman Sachs Group Inc. employees who moved to Coinbase Global Inc. ING Groep NV economist Teunis Brosens says of Celsius: “If this does not illustrate why crypto regulation is welcome, I don’t know what does.” But even then, only after gulping a fair amount of blockchain Kool-Aid and ignoring the rumblings of concern from watchdogs. Those rewards seem to have drowned out the risks of DeFi’s bank-like products that lack bank-like oversight. None of that is on display today. Even before selling pressure began to batter DeFi platforms, regulators had been ringing alarm bells on Celsius for some time.

Crypto markets were shaken as the not-so-stablecoin UST and sister cryptocurrency LUNA collapsed last month, bringing the digital asset economy down with ...

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What Is Celsius? Why Is It Crashing the Crypto Market? Getty. A difficult year for cryptocurrency investors has become even more challenging after crypto lender ...

“Their potential insolvency matters to all crypto investors because they were a major player who had assets deployed on multiple DeFi protocols on different blockchains. The company said that it has made more than $8 billion in loans, and until recently had offered extremely high annual percentage yields ( APYs) of up to 18% on cryptocurrency deposits. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” read the statement. Celsius also has its own digital token CEL, which it sold to raise $50 million in funding in 2018. In response to the comparisons, Mashinsky accused the user of spreading “misinformation” and “FUD,” a popular crypto community acronym for “fear, uncertainty and doubt.” While Celsius users await an update from the company on if and when they can regain access to their assets, rival crypto lending platform Nexo tweeted a letter of intent expressing interest in buying Celsius’ assets. “I think this is a bigger contributor to the decline we have seen, as it results in a more hawkish Federal Reserve – they are now forced to remove more liquidity from the market to bring down inflation,” Sotiriou says. “Despite the fear, uncertainty and doubt the Celsius debacle has caused, the sell-off started at the beginning of the weekend on Friday, after the U.S. inflation data was released,” Sotiriou says. Some crypto experts accused Celsius Network of contributing to the collapse of Luna, but Celsius has denied those claims. The price of CEL is down 46% in the past 24 hours and is now down 97%, as of this writing. “We are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations while we take steps to preserve and protect assets.” The Celsius news heightened growing market fears and mistrust surrounding crypto, sending the price of Bitcoin down more than 13% to under $24,000, a new 52-week low.

The pause in withdrawals, Swap, and transfers by crypto lender Celsius has led to total crypto value falling below $1 trillion for first time since Jan.

This is especially true during times of economic uncertainty that include high inflation, market instability, and a desire on the part of investors to get more "bang for their buck" when it comes to interest on savings. Investors have rushed to deposit their money in crypto banks due to extremely high interest rates—as noted above, up to 18%, although 9% is more common according to reporting by the Washington Post.6 Considering that the pause means that investors with money deposited with Celsius can't get their money out, the precipitous drop is not surprising, especially given the concerns critics have about Celsius's stability in the first place. This has led some critics to suggest Celsius and others like it don't have sufficient assets to back up deposits if there were a run by investors to withdraw funds.4 The platform offers very high returns on crypto deposits, up to 18.6% before the pause. These include the recent collapse of the TerraUSD stablecoin and a 40-year-high monthly inflation rate of 8.6% announced last Friday. The Celsius move triggered a slide across cryptocurrencies, with total crypto value dropping below $1 trillion for the first time since January 2021.

Centralized crypto lender Celsius rocked its customers' worlds Sunday night after freezing withdrawals and other transactions on the platform, ...

There is nothing bigger than the Terra fiasco and then, Celsius," Chase Devens, an analyst at Messari tells Axios. "You have retail user funds getting wiped out and not a lot of transparency on what happened." - Gurgavin Chandhoke, an Ontario-based investor, on June 4tweetedthat he sold out of his Celsius account. But Imagine KickUs didn't allow you to make that transfer, and instead just... Those on the nationallevel reportedly did too. They also have user-agreement clauses that can be invoked to protect themselves. - The value of those sneakers backing your loan declined, but no sweat — you just have to post a few more sneakers from your account as collateral. - Worse yet, imagine you posted some of your sneakers as collateral for a loan on the platform (if you couldn't repay your loan, KickUs would sell your sneakers). - So you work with KickUs who holds your expansive collection of sneakers, charges other people for wearing them and gives you a part of the cut. - Via Celsius, customers could hold a token they like (bitcoin or maybe even the firm's CEL) and earn more of it through Celsius. Customers could also take out crypto-collateralized loans to buy more coins. - In the Celsius app, a customer might be offered a choice of either 7.1% interest if earning in USDC, or 9.3% for CEL. Catch up fast: Celsius' promise to its 1.7 million users was "buy, sell and hodl" and hodlers could earn crypto on their crypto held on the Celsius platform. Details: Some customers responded to Celsius' announcement on Twitter, saying they were stuck in a loan limbo of Celsius' making — unable to transfer money they have sitting in their Celsius accounts to post additional funds and make good on their loans.