Celsius society breaks the silence

Since Monday, the lending platform has blocked withdrawals and transfers of cryptocurrency funds from its users. She just posted a message on her blog.

Celsius finally breaks her silence. On Monday, the platform announced to its users that they could no longer withdraw or transfer their funds. A decision that had rocked the cryptocurrency market, already in bad shape in a gloomy economic context, causing bitcoin to plunge to $20,000. While many users whose accounts are blocked were waiting, the company has just updated the questions/answers on its blog in the current context.

“Stabilize our liquidity and our operations”

The company explains the reasons for this decision, taken a week after financial analysts pointed to the question of the solvency of the company:

“In order to stabilize our liquidity and operations while taking steps to protect customer assets, we believe it is in the best interests of our community and our customers that Celsius pause withdrawals, trades and transactions. transfers between accounts. We have taken this step in order to put Celsius in a better position to meet its withdrawal obligations over time.

The company’s post is not very reassuring: for now, although the company explains that it is working around the clock to resolve the situation, its users still cannot access their assets.

Nothing very reassuring either for the funds of users who were in a deposit account and who remain blocked. “We have halted withdrawals to give us time to stabilize liquidity and operations,” the company said. As she had already indicated on Monday, her customers will continue to accumulate rewards following the deposits of their cryptocurrencies on the platform, even during the break.

$12 billion in assets under management

As a reminder, Celsius has 1.7 million customers and claims $12 billion in assets under management. The company further indicates that “operations” of Celsius are continuing despite this pause. To understand how the loan platform works, BFM Crypto had produced a paper on this subject.

The company also answered a recurring question from its customers:

“If you receive a margin call, respond to the margin call email as soon as possible to let the lending team know that you want to resolve the margin call, providing additional collateral for the loan or by repaying the loan. Please note that, like other assets in your Celsius account, any additional assets transferred to your account will not be available for withdrawals, exchanges or transfers between accounts until the pause on these features will remain in place”.

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