Celsius says it ‘will take time’ to restore operations, as bitcoin plunges amid cryptocurrency tailspin

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Cryptocurrency company Celsius Network says it will take time to normalize operations after suspending customer withdrawals and transfers a week ago.DADO RUVIC/Reuters

Celsius Network Ltd., which last week halted all transactions — putting its nearly two million customers in limbo and sending cryptocurrencies into a global tailspin — says it “will take time” to normalize operations, as digital assets such as bitcoin continue to plunge.

In a new blog post on Monday, Celsius CELH-Q said customers will still not be able to pull out their money from the platform, as it works with regulators and other officials to come up with a resolution for its “pause” in cryptocurrency lending and earning services.

The New Jersey-based cryptocurrency company that long touted itself as the “world’s leading crypto earning and lending platform” held more than US$11-billion in assets as of last month, before it abruptly closed down services by June 13, citing “extreme market conditions.” Among its major investors around the world is Canadian pension fund giant Caisse de dépôt et placement du Québec, which invested US$400-million in Celsius as part of a funding round late last year.

“We are pausing our Twitter Spaces and (Reddit) AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community,” Celsius said Monday. It warned people to be vigilant of social media accounts purporting to be associated with the company.

“We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time.”

Over the weekend, bitcoin plunged well below the important benchmark of US$20,000 — hovering around US$18,000 on Saturday and Sunday. That price level is of symbolic significance, as it was roughly the peak of the 2017 cycle before the bottom fell out.

Bitcoin has fallen by 37 per cent this month and by over 57 per cent this year. Meanwhile, Ether, which is the second most popular cryptocurrency, fell below its own benchmark of US$1,000 this weekend.

More to come.

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