Crypto firm Celsius halts withdrawals, cites “extreme market conditions”

US-based crypto firm Celsius has suspended withdrawals to stabilise liquidity and protect and preserve its assets.

Crypto firm Celsius pauses withdrawals and account transfers

Announcing the move on Twitter, Celsius says it is “pausing all withdrawals, swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community”.

Citing “extreme market conditions”, the firm says the pause in withdrawals and transfers is designed to put Celsius in a “better position” to honour its withdrawal obligations in the future.

Celsius states that protecting its community is its “top priority”, and in that lieu of that, has activated a clause in its Terms of Use that authorises the pause in withdrawals on the site.

“Celsius has valuable assets and we are working diligently to meet our obligations,” the company says in a statement.

During the pause, customers will continue to accrue rewards while it works to “protect and preserve” its assets and stabilise liquidity.

“We understand that this news is difficult,” Celsius says, “but we believe that our decision is the most responsible action we can take to protect our community”.

“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.”

Celsius was founded in 2017 and is based in Hoboken, New Jersey. It describes itself as “a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions”.