After the market downturn caused the firm to halt all withdrawals for its customers, embattled cryptocurrency lending firm Celsius has asked users to give it more time to stabilize liquidity and operations.
Users who deposit their crypto with Celcius will be rewarded with high returns by lending the cryptos out to other institutions to generate a profit.
However last week, the company halted withdrawals for customers due to “extreme market conditions.”
Celcius asked customers for more time to handle the situation on Monday.
“We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time,” the company said in a blog post.
“As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials. We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”
“To focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community”, Celsius said it would pause Twitter Spaces and Ask Me Anything, or AMAs.
Hit with a confluence of factors that have put it on the verge of potential insolvency, the market downturn has eroded the value of the assets Celcius holds. While a big exposure to a token called staked ether, or stETH, has worsened Celsius’s liquidity issues.