Major U.S. cryptocurrency lending company Celsius Network on Monday froze withdrawals because of “extreme market conditions,” in the latest sign of pressure on the sector from tumbling crypto markets.
Celsius Network, a significant player in crypto lending, offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends out crypto currencies to earn a return.
It raised $750 million in funding late in November from investors, including Canada’s second-largest pension fund. The company was valued at the time at $3.25 billion.
In a blog post, the company said it had frozen withdrawals, as well as transfers between accounts, “to stabilise liquidity and operations while we take steps to preserve and protect assets.”
“We are taking this action today to put Celsius in a better position to honour, over time, its withdrawal obligations.”
Crypto markets have come under pressure alongside stocks and other assets in financial markets amid rising interest rates and surging inflation.