The price of bitcoin and other cryptocurrencies plummeted Monday after a major cryptocurrency lender effectively failed and halted all withdrawals from its platform, citing “extreme market conditions.”
It's the latest high-profile collapse of a pillar of the cryptocurrency industry. These meltdowns have erased tens of billions of dollars of investors' assets and spurred urgent calls to regulate the freewheeling industry.
In exchange for customers' deposits, the company pays out extremely generous yields, upwards of 19% on some accounts. Celsius takes those deposits and lends them out to generate a return. “It was easy to overlook the risk because users got used to these weekly interest payouts from Celsius,” Orduna said. He pulled most of his money out of Celsius late last week but said he had still residual holdings trapped on the platform.
“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” Celsius said in a statement.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto market crashes anew as trading platform Celsius freezes up | CBC NewsBitcoin and other cryptocurrencies plunged through the weekend and into Monday as high inflation sent investors running for the exits and caused major trading platforms to seize up.
Read more »
Caisse de Dépôt-backed Celsius freezes withdrawals as crypto lender struggles in 'extreme' conditionsBitcoin tumbled after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing \u0022extreme\u0022 conditions
Read more »
How the crypto crash exposed the sector’s lies – and left retail investors in the lurchRetail investors believed the hype behind crypto, and it all grew so feverish that major institutional investors started taking the bait as well
Read more »
Bear market growls on Wall Street as stocks and crypto diveFears about a fragile economy are forcing Wall Street toward what's known as a bear market, with the S&P 500 tumbling more than 20% below its record set early this year.
Read more »
Crypto company Celsius Network freezes customer withdrawals, transfers citing ‘extreme market conditions’In a blog post, the Celsius says it is working to meet its withdrawal obligations and is considering ‘various options’
Read more »
Private mortgage lender Magenta suspends new loan applications until fallMagenta Capital’s decision to suspend new loan applications until September comes less than a week after the Bank of Canada raised its benchmark interest rate by another 50 basis points
Read more »