Crypto Funding Company Celsius Suspends All Transactions

The DeFi (decentralized finance) industry was shaken by the fact that cryptocurrency company Celsius halted all user transactions due to "extraordinary market conditions" in the cryptocurrency market.

There have been allegations that crypto funding firm Celsius has been battling bankruptcy issues due to the hard landings in the cryptocurrency markets in recent days. The deterioration of the stability of staked Ethereum (stETH) in the Lido network in the markets created uneasiness. This contributed to the drop in Celsius. The negative developments experienced caused hard sales in the Ethereum market. The following statements were used in the statement made by the crypto company: “Adhering to the interests of our community is our top priority. In order to realize this commitment and remain committed to our risk management system, we have implemented a clause in our terms of use that will allow this process to take place. Celsius has valuable assets and we work diligently to meet our obligations." Celsius is known as a crypto lending company that offers its clients double-digit returns on assets in cryptocurrency giants such as Bitcoin and Ethereum. While the company provides a central custody service for crypto investors in the DeFi space, it also forms part of a group of companies operating in the CeFi industry. Celsius company was investing in DeFi protocols to provide high efficiency to its users. However, with the sharp decline of the crypto market, it became difficult to achieve the expected high returns. Therefore, rumors began to spread that the company was on the verge of bankruptcy. It was mentioned that Celsius is in a much more difficult situation after the news that Lido staked Ethereum (stETH) lost its stability this week. Celsius CEO Alex Mashinsky has denied bankruptcy claims multiple times in recent weeks. Celsius's shutdown had a huge impact on the cryptocurrency industry. As of last year, the company had a fund of 20 billion dollars under its management. Celsius, which is known to have more than 1.7 million customers, was recorded to have raised $750 million in funds last year. Celsius's native token, CEL, was negatively affected by these developments. The CEL token has lost 54 percent of its value in the last 24 hours, falling to $0.18. DeFi Suffers Negative Impacts With Recent Drop According to DefiLlama data, the total value locked in DeFi has fallen by 20 percent in the last two days to below $80 billion, the lowest level of the year.