Adding to its recent mounting woes, crypto lending platform Celsius Network, faces dissent among its users, many claiming they are unable to withdraw funds from their Celsius App.
This, comes after the crypto lender organization experienced losses in the BadgerDAO hack in December-2021, criminal charges against it’s former Chief Financial Officer Yaron Shalem, and most recently, breadcrumbs indicating that Celsius played a part in the Terra LUNA USDT debacle last month.
The price of the native CEL token has plunged to a current low $0.8129, from it’s near high $7.73, only a year ago today (June 4, 2022), according to CoinMarketCap data. It dropped to as low as $0.7994 earlier today.
Image by coinmarketcap.com
Celsius Network CEO Alex Mashinsky has taken to Twitter to assuage customer concerns related to withdrawal issues, claiming that their funds are safe.
As reported by U.Today, Bitcoin, the largest cryptocurrency, dropped to a new 52-week low of $29,011 today. The market crash was caused by the collapse of Terra’s LUNA governance token and its UST stablecoin. The downfall of one of the biggest cryptocurrency projects had a ripple effect on the broader cryptocurrency market.
Mashinsky, however, claims that Celsius weathered extreme market volatility without experiencing any significant losses. He touted the company’s risk management frameworks that are meant to protect customers’ assets.
In mid-May, rumors started flying about Celsius being involved in a potential bailout of Terra together with Jane Street Capital and Jump Trading. However, Mashinsky has definitely denied his company’s involvement.
Last month, Celsius updated its “Risk Disclosures” messaging to warn customers that its native CEL token faces significant regulatory risks.
Celsius also banned non-accredited U.S. investors from earning rewards on its Earn platform.
One of the leading cryptocurrency lenders is facing severe regulatory scrutiny in the U.S. Regulators from Texas, New Jersey and Alabama alleged that the company had violated securities laws.
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