On Monday, June 13, 2022, the crypto economy dropped below the $1 trillion region, as a great majority of crypto assets have lost between 10% to 25% during the last 24 hours. Meanwhile, the crypto community has been discussing the cryptocurrency lending application Celsius as rumors of insolvency have been swirling. On June 12, around 10:10 p.m. (ET) Celsius announced that it paused “all withdrawals, swaps, and transfers between accounts.”
“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” Celsius added. The firm also published a blog post that explained Celsius was making moves to fix the situation.
There are rumors that Celsius may be insolvent and speculation concerning the company’s money issues started well before the company paused operations. The Former CEO of The Block Crypto news publication, Mike Dudas, tweeted about the “demise of Celsius” the day before the firm stopped withdrawals.
“I’m saddened by how many people are cheering on the demise of [Celsius Network],” Dudas tweeted. “I, along with many others, counseled people not to put their funds with that risky business. However, many did, and a large number of retail folks look like they are soon to be rekt. We all lose.”
What do you think about the situation surrounding Celsius Network? Let us know what you think about this subject in the comments section below.