LONDON: Bitcoin tumbled on Monday after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing"extreme" conditions, in the latest sign of the financial market downturn hitting the cryptosphere.
Crypto markets have dived in the past few weeks as rising interest rates and surging inflation prompted investors to ditch riskier assets across financial markets. Celsius said on its website on Monday that customers who transfer their crypto to its platform can earn an annual return of up to 18.6%.In a blog post, the company said it had frozen withdrawals, as well as transfers between accounts,"to stabilise liquidity and operations while we take steps to preserve and protect assets."
The surge of interest in crypto lending led to concerns from regulators, especially in the United States, who are worried about investor protections and systemic risks from unregulated lending products.