One of the biggest crypto lenders Celsius network told its customers on Sunday evening that it is pausing withdrawals, transfers, and swaps between accounts. Celsius said it’s taking this action to ‘stabilize liquidity and operations while preserving and protecting assets’. Saying the move would put it in a better position to honor its long-term obligations.

It is reported that Celsius transferred a total of $320 million worth of crypto to FTX before making the announcement which prompted the price of the firm’s token to trigger a 74% drop.

Celsius lends customer deposits to other users to earn a return and according to its website, the firm managed $11.8bn in assets as of 17 May 2022. The company said it has 1.7 million users.

Celsius came under regulatory pressure in April and stopped offering interest-bearing accounts to non-accredited investors in the US. There are also claims by some market observers that Celsius played a role in the collapse of LUNA and TerraUSD last month. But Celsius disputes that claim.

This announcement is coming at the end of a brutal weekend in the crypto market that saw liquidation worth hundreds of millions of dollars.

Celsius said it hoped to lift its suspension on withdrawals, swaps, and transfers as soon as possible but cannot say for sure when that would happen as the process will take time considering various options and there may be delays.

Featured image source: Outlook India.