Celsius CEO Alex Mashinsky.
Piaras Ó Mídheach Sports File for Web Summit | Getty Images
Controversial cryptocurrency lending firm Celsius has asked users to give it more time to stabilize liquidity and operations after the market slump caused the company to freeze withdrawals for its customers.
The cryptocurrency market has wiped out billions of dollars in value in recent weeks, with bitcoin dropping below $20,000 over the weekend.
Celsius offers high returns to users who deposit their crypto with the company by lending it to other institutions to make a profit.
But last week, the company halted customer withdrawals due to “extreme market conditions.”
On Monday, Celcius asked customers for more time to deal with the situation.
“We want our community to know that our goal remains to stabilize our liquidity and operations. This process will take time,” the company said in a blog post.
“As a priority since our company was founded, we maintain an open dialogue with regulators and officials. We plan to work with regulators and officials regarding this pause and our company’s determination to to find a solution.”
Celsius said it would pause Twitter Spaces and Ask Me Anything, or AMAs, “to focus on navigating these unprecedented challenges and fulfilling our responsibilities to our community.”
Celsius has been hit by a confluence of factors that has pushed it to the brink of possible insolvency.
The market downturn has eroded the value of the assets it owns. While a large exposure to a token called staked ether, or stETH, has exacerbated Celsius’ liquidity problems.