MUMBAI (BLOOMBERG) - Celsius Network will need more time to stabilise its liquidity and operations, the embattled crypto lending platform said in a blog post after it froze deposits last week.
Celsius, one of the biggest crypto lenders, has been struggling to raise funds in a fragile digital asset market hit by tightening interest rates, liquidity and the collapse of the Terra blockchain last month.
"We want our community to know that our objective continues to be stabilising our liquidity and operations," Celsius said in its blog on Monday (June 20). "This process will take time."
The firm has also paused Twitter Spaces and Ask Me Anything, also known as AMAs in crypto jargon, "to focus on navigating these unprecedented challenges", Celsius said in the post.
The rout in crypto markets, which has washed 70 per cent off the largest tokens by market value - Bitcoin and Ether - was accelerated by the crisis at Celsius as investors panicked about liquidations and a cash crunch.
Broader signs of stress were evident. Crypto hedge fund Three Arrows Capital suffered large losses while another lender, Babel Finance, also paused withdrawals. On Sunday, token holders of Solend, a lending app on the Solana blockchain, voted to temporarily take over the account of a large user who faced the threat of a large liquidation.