New Crypto Scandal: Celsius Network pauses withdrawals, CEL collapses

The week starts with a new shock for the cryptocurrency market, as the Celsius platform announced this morning that it had paused withdrawals, swaps and transfers between accounts.

Celsius Network is a fintech platform that allows users to stake their cryptocurrencies to borrow and earn interest in return. The platform accepts more than 35 cryptocurrencies, including BTC, LTC, ETH, and stablecoins like USDT, GUSD, and DAI. If users choose to receive their interest earnings in CEL, the platform's native token, payments are 30% higher.

"Due to extreme market conditions, we are announcing today that Celsius is discontinuing all withdrawals, swaps and transfers between accounts. We are taking this step today to put Celsius in a better position to ultimately meet its withdrawal obligations," reads a statement published on the Celsius Network blog.

Unsurprisingly, the value of al cryptocurrency Celsius (CEL) fell in the face of the announcement, losing more than half of its value in 1 hour, from $ 0.36 to $ 0.15.

But beyond the impact on The native cryptocurrency of Celsius Network, this new case also seems to weigh on the entire cryptocurrency market, Bitcoin having for example accentuated its fall to reach $ 25,000 shortly after the announcements of Celsius Network.

Indeed, such cases erode investor confidence in the entire cryptocurrency market, especially since the shock of the collapse of TerraUSD and its sister cryptocurrency LUNA is still very fresh in the minds of crypto traders.

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