The crypto lender paused all customer withdrawals and swaps on Sunday night, citing liquidity issues. CEL quickly went off a cliff.
On Sunday night, with crypto markets already in freefall, controversial crypto lender Celsius announced it was suddenly pausing all customer withdrawals, swaps, and transfers.
“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” the company wrote in a blog post on Medium. “We are taking this necessary action for the benefit of our entire community in order to stabilize 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.”
The company’s CEL token quickly reacted, dropping 70% in one hour from a prior high of $0.49 earlier on Sunday down to $0.15, according to CoinMarketCap.