© Reuters. FILE PHOTO: A representation of cryptocurrencies in this illustration taken January 24, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – Cryptocurrency lending company Celsius Network will suspend withdrawals and transfers between accounts due to “extreme market conditions”, the company said on Monday, in the latest sign of pressure in the banking industry. cryptography.
extended earlier declines following the Celsius announcement, falling more than 6% to hit $24,888, an 18-month low. Ether, the world’s second largest cryptocurrency, fell more than 8% to $1,311, its lowest since March 2021.
“We are taking this necessary step…in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the company said https://blog.celsius.network/a-memo-to-the -celsius-community-59532a06ecc6 in a blog post.
“Additionally, customers will continue to earn rewards during the break, consistent with our commitment to our customers.”
Celsius Network, which raised $750 million in funding late last year, is a big player in crypto lending. It offers interest-bearing products to customers who deposit their cryptocurrencies with the company and lends cryptocurrencies to earn a return.
The sector has, however, come under regulatory scrutiny, particularly in the United States
Crypto markets have been under pressure in recent months, falling alongside other so-called risky assets as interest rates have risen around the world.
The price crashes were also caused by and contributed to the collapse of some crypto projects, most notably the collapse of the stablecoin TerraUSD.
TerraUSD last month broke its dollar peg and crashed in value, shaking the crypto industry.