Written by Brenda Nakalema

Celsius Issues Warning That It Might Need More Time Before It Can Resume Crypto Lending Business

Celsius Network, the crypto lender that previously took the drastic step of suspending customer withdrawals last week after the wide …

Celsius Network, the crypto lender that previously took the drastic step of suspending customer withdrawals last week after the wide selloff in digital assets, issued a warning that it would need more time before returning to business as usual.

The company wrote in a statement issued through a blog post, “it has been one week since we paused all withdrawals, Swap, as well as transfers. We want our community of supporters to know that our objective continues to be stabilizing our liquidity and operations. This process will take time.”

The company experienced major headwinds as the digital asset market reacted to the biggest interest-rate hike in almost 30 years, issued by Federal Reserve. On the back of this news, Bitcoin (the biggest cryptocurrency) dropped more than 20% over the past week but recovered roughly 10%, landing at $20,521.97 in the last 24 hours.

Celsius typically pays out 18.6% a year to customers for taking in deposits of digital tokens. A few people have compared it to a bank despite the fact that it doesn’t have the same regulatory protection and its deposits are not federally insured. By the close of May, it held a little under $12 billion in crypto deposits.

The company went on to add, “We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution. We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfil our responsibilities to our community. Acting in the interest of our community remains our priority, and we will continue to work around the clock.”