What happened now? Yesterday, the crypto industry received another blow when Celsius Network, one of the largest cryptocurrency lenders, informed its 1.7 million customers that it was suspending withdrawals, swaps and transfers between accounts due to “extreme market conditions.” The news came as Bitcoin and Ethereum fell to their lowest prices in more than a year.

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After another stormy weekend for major cryptocurrencies Celsius announced it froze withdrawals and transfers. “We are taking these necessary actions for the benefit of our entire community to stabilize liquidity and operations while taking steps to preserve and protect assets,” the post reads. The company has never said when customers can expect withdrawals again.

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There are reports that Celsius transferred $320 million worth of cryptocurrencies to the FTX exchange right before announcing the withdrawal/transfer of the account.

The decentralized finance (DeFi) platform works by collecting client deposits, which it lends to others to generate profits. Last year, Celsius managed to raise $750 million in funding from investors that included Canada’s second-largest pension fund, Caisse de Dépôt et Placement du Québec (CDPQ), despite the lack of FDIC government insurance coverage and warnings that the operation was no different. from a Ponzi scheme.

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The Celsius network has rarely been far from contention. Wall Street Journal says it stopped offering interest-bearing accounts to non-accredited U.S. investors in April due to regulatory pressure. The company was also issued a winding-up order from New Jersey last year and its chief financial officer was removed from office after being arrested in Israel in November on charges of money laundering, fraud and sexual harassment related to his previous job. Some say it also played a part in the collapse of Terra, which eventually destroyed almost 1 trillion dollars on the value of cryptocurrency markets, but Celsius denies this.

The Celsius Network website claims that as of May 17, the company has processed $8.2 billion in loans and managed $11.8 billion in assets.

At the time of writing, Bitcoin is worth $25,295, the lowest price since December 2020, while Ethereum is worth $1,310, the lowest it has not seen since January last year.