Celsius CEO Alex Mashinsky.
Piaras Ó Mídheach | Sportsfile for Web Summit | Getty Images
Embattled cryptocurrency lending firm Celsius has asked users to give it more time to stabilize liquidity and operations after the market downturn caused the firm to freeze withdrawals for its customers.
The cryptocurrency market has seen billions of dollars of value wiped off in the last few weeks, with bitcoin falling below the $20,000 mark over the weekend.
Celsius offers high yields to users who deposit their crypto with the company by lending it out to other institutions to generate a profit.
But last week, the company halted withdrawals for customers 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 objective continues to be stabilizing our liquidity and operations. This process will take time,” the company said in a blog post.
“As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials. We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”
Celsius said it would pause Twitter Spaces and Ask Me Anything, or AMAs, “to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community.”
Celsius has been hit with a confluence of factors that have put it on the brink of potential insolvency.
The market downturn has eroded the value of the assets it holds. While a big exposure to a token called staked ether, or stETH, has furthered Celsius’s liquidity issues.