A week ago, crypto lending company Celsius rocked the cryptocurrency world when it announced it would pause the ability of its users to withdraw and transfer their coins due to “extreme market conditions.” Those extreme conditions included the crash of major cryptocurrency prices across the globe.
Since then, things haven’t gotten better. This weekend bitcoin sunk below the $20,000 mark for the first time since December 2020 (at the time of this writing bitcoin is back above the $20k mark at $20,600). And Celsius users who were hoping issues with the crypto lending company could be resolved quickly got some more bad news.
Today Celsius posted an update to its blog that its pause on withdrawals, transfers, and Swap will continue as the firm continues “stabilizing our liquidity and operations.” But how much longer will the pause go on? All Celsius says is “This process will take time,” with the company noting it will “continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”
Celsius also announced another pause–this time to some of its social media operations. The company announced, “We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community.”
Celsius users have reacted angrily on Twitter to the company’s update arguing scaling back communication with them is the opposite of what is needed right now. Since Celsius announced a pause on withdrawals and transfers last week, crypto lender Babel Finance paused withdrawals and crypto exchange Hoo paused transactions as well, reports The Financial Times. All this likely raises the fears that a crypto winter is setting in, and, as Bloomberg notes, that’s rattling the industry.
— Celsius (@CelsiusNetwork) June 20, 2022