Cryptocurrency-lending platform Celsius freezes withdrawals as Bitcoin hits 18-month low

midian182

Posts: 8,150   +96
Staff member
What just happened? The crypto industry took another blow yesterday when The Celsius Network, one of the largest cryptocurrency lenders, told its 1.7 million customers that it was pausing all withdrawals, swaps, and transfers between accounts due to "extreme market conditions." The news comes as Bitcoin and Ether crashed to their lowest prices in over a year.

Following another turbulent weekend for the major cryptocurrencies, Celsius announced it was freezing account withdrawals and transfers. "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," it wrote. The company never said when customers could expect to make withdrawals again.

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

The decentralized finance (DeFi) platform operates by collecting customer deposits that it loans out to others to earn a return. 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 protection and warnings that the operation is no different from a Ponzi scheme.

The Celsius Network has rarely been far from controversy. The Wall Street Journal reports that it stopped offering interest-bearing accounts to US-based nonaccredited investors in April following regulatory pressure. The company was also the subject of a cease-and-desist order from New Jersey last year, and its CFO was suspended after being arrested in Israel in November on money laundering, fraud, and sexual assault charges relating to his previous job. Some say it also played a part in the collapse of Terra, which ultimately wiped almost $1 trillion off the value of crypto markets, but Celsius denies this.

The Celsius Network's website claims the company had processed $8.2 billion worth of loans and managed $11.8 billion in assets as of May 17.

At the time of writing, Bitcoin is at $25,295, its lowest price since December 2020, while Ethereum is at $1,310, a low it hasn't seen since January last year.

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YouShallNotPass

Posts: 42   +89
z1owpir.jpg
 

Achaios

Posts: 389   +1,079
So yeah, you have got to remember tho, Energy is only ridiculously expensive for us peons in the EU.

Americans have got energy so cheap that it's almost free and some Americans in Southern States literally even have 100% free energy b/c they're on Solar Panels and have been for quite some time now and they have repaid that investment.

Miner Forums are full of Americans who happily keep mining and still make a handsome profit b/c free energy.
 

wiyosaya

Posts: 7,958   +7,001
So yeah, you have got to remember tho, Energy is only ridiculously expensive for us peons in the EU.

Americans have got energy so cheap that it's almost free and some Americans in Southern States literally even have 100% free energy b/c they're on Solar Panels and have been for quite some time now and they have repaid that investment.

Miner Forums are full of Americans who happily keep mining and still make a handsome profit b/c free energy.
Wow! I really think that you are mis-informed. Sorry, I have to wonder whether you are getting the mis-information from Russia?

Right now, the US is paying the highest it has ever paid for gasoline.

Some southern states?? - https://www.worldatlas.com/articles/the-top-us-states-in-the-switch-to-solar-energy.html Not all of the states in the top 10 on this list are southern states.

And besides, what does solar energy have to do with crypto? I've heard people were buying abandoned coal-fired power plants to power their mining operations.
 

Achaios

Posts: 389   +1,079
Wow! I really think that you are mis-informed. Sorry, I have to wonder whether you are getting the mis-information from Russia?

Right now, the US is paying the highest it has ever paid for gasoline.

Some southern states?? - https://www.worldatlas.com/articles/the-top-us-states-in-the-switch-to-solar-energy.html Not all of the states in the top 10 on this list are southern states.

And besides, what does solar energy have to do with crypto? I've heard people were buying abandoned coal-fired power plants to power their mining operations.

What does electrical energy needed to run miner rigs have to do with gasoline? The money you pay for electricity is ridiculously small whereas in the EU we pay up to 50 EURO cents for electricity.

US Miners at Crypto-Miner forums consistently report prices vicinity of 5 -10 cents of a US dollar for electricity. Are you suggesting that the KGB is paying all these US miners to lie?

"Some Southern States" seems to be a pretty accurate description for Nevada, Cali and New Mexico. That's where most miners come from at least if we suppose that the KGB is not using bots to pretend to be US Miners and report absurdly small electricity costs for some obscure reason.

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This looks like KGB to you? One of the Miners here is Canadian and he reports an electricity cost of 0.14 CANADIAN $ per KW/HR. Do you know how much money we pay in Greece for electricity? I pay personally paid 45 EURO CENTS per KW/HR. Do you think I am a KGB sock puppet account?

Many US Miners posting at Crypto Mining forums have invested in Solar Panels and thus have free electricity. That's what they say unless ofc if you want to play with me the KGB game and seriously insinuate that these ppl are sock puppets ran from Moscow.
 
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Dimitriid

Posts: 2,219   +4,271
I guess we're now under the consequences part of 'Financial tools should be fully unregulated' as they lock whomever is left there in as a way to try and stop the market crash. This would be super illegal unless there's a legally recognized challenge to freeze accounts like that under normal circumstances but again, this is what crypto bros wanted: Fully unregulated markets.
 

m4a4

Posts: 3,009   +3,936
TechSpot Elite
Who knew that looming under (the threat of) a market crash/recession that people would be pulling money out of high risk assets (like crypto).

Lol, people here acting like there's nothing wrong anywhere else...
 

Kam7r

Posts: 77   +151
So yeah, you have got to remember tho, Energy is only ridiculously expensive for us peons in the EU.

Americans have got energy so cheap that it's almost free and some Americans in Southern States literally even have 100% free energy b/c they're on Solar Panels and have been for quite some time now and they have repaid that investment.

Miner Forums are full of Americans who happily keep mining and still make a handsome profit b/c free energy.
why going so far as the US, in France the electricity is cheap as hell (currently 0.16€ per KW/HR ) I don't know what is the situation in your end , but saying that the whole EU is like that is kinda wrong... anyway, for this crypto news, I tho today was bad until I read this :)
 

Achaios

Posts: 389   +1,079
why going so far as the US, in France the electricity is cheap as hell (currently 0.16€ per KW/HR ) I don't know what is the situation in your end , but saying that the whole EU is like that is kinda wrong... anyway, for this crypto news, I tho today was bad until I read this :)

Is that so for real? I thought every1 in the EU was screwed not just us. I know for a fact Germans are paying lots and Britishers too but they are out of the EU.

The Govt here will run a software platform soon which will reimburse ppl on some of the money they paid for electricity b/c our prices are so absurd.


Check this out. It's definitely not just us.
 

Kam7r

Posts: 77   +151
Is that so for real? I thought every1 in the EU was screwed not just us. I know for a fact Germans are paying lots and Britishers too but they are out of the EU.

The Govt here will run a software platform soon which will reimburse ppl on some of the money they paid for electricity b/c our prices are so absurd.


Check this out. It's definitely not just us.
straight from my contract ( a really normal one) it's : 0,1740 € exactly , so yea it still went up a little , I can even show you the screenshot if you don't believe it
edit: and natural gas is even cheaper : 0,0561 € /kWh
 

Adhmuz

Posts: 2,261   +1,088
This looks like KGB to you? One of the Miners here is Canadian and he reports an electricity cost of 0.14 CANADIAN $ per KW/HR. Do you know how much money we pay in Greece for electricity? I pay personally paid 45 EURO CENTS per KW/HR. Do you think I am a KGB sock puppet account?
Wow, 14¢/kWh is expensive, wonder what province that is, here in Quebec I pay 6.319¢/kWh for the first 40 kWh followed by 9.749¢/kWh for every kWh I exceed the first 40, this is straight from my online billing.

If I convert your price in € to Canadian $ it's 60¢/kWh! Now that's crazy!

What were you paying before the price hike?
 

Gezzer

Posts: 287   +145
Who knew that looming under (the threat of) a market crash/recession that people would be pulling money out of high risk assets (like crypto).

Lol, people here acting like there's nothing wrong anywhere else...

But... But... isn't crypto the prefect hedge against inflation, better than gold? Is what everyone holding the proverbial crypto bag is saying right now. Crypto like any other over hyped "investment" only benefited those that got in and out early.
 

fps4ever

Posts: 985   +1,480
So yeah, you have got to remember tho, Energy is only ridiculously expensive for us peons in the EU.

Americans have got energy so cheap that it's almost free and some Americans in Southern States literally even have 100% free energy b/c they're on Solar Panels and have been for quite some time now and they have repaid that investment.

Miner Forums are full of Americans who happily keep mining and still make a handsome profit b/c free energy.
LOL no...
 

BuckarooBonzai

Posts: 138   +99
The president of San Salvador is mumbling to himself, "now WTF am I supposed to do with this volcano"?

To which I say< "hang in there big guy, maybe if you sacrifice a few virgins to it, the price of bitcoin will come back up".
I guess turn to China for help like Sri Lanka?
 

Endymio

Posts: 1,815   +1,878
France has alot of NPPs.
Germany doesn't. lol.
France pays one of the lowest electricity rates in the EU, thanks to their reliance on nuclear power. Germany was the same, until they embarked on an ill-fated escapade to replace their nuclear plants with wind and solar. Now, they're one of the most expensive nations in the world.
 

captaincranky

Posts: 18,824   +7,751
France pays one of the lowest electricity rates in the EU, thanks to their reliance on nuclear power. Germany was the same, until they embarked on an ill-fated escapade to replace their nuclear plants with wind and solar. Now, they're one of the most expensive nations in the world.
This is what the US should do, put up some new nukes. Three Mile Island is well in the past. Let's move on.
 

Digitalzone

Posts: 183   +108
"The company never said when customers could expect to make withdrawals again."
Say bye bye to your money. Exactly what I've been thinking the whole time if this could happen. The money withdrawal in crisis was really nagging me. But it's not that different with other financial institutions when things are going down. Except people savings are insured by governments somewhere.