Crypto market tumbles further as Celsius pauses withdrawals

Celsius, the popular crypto lending platform, issued a statement on Monday, June 13th, stating that in light of the extreme market condition and “to protect the interest of the community,” they will be pausing all withdrawals, swaps, and account transfers. On the news of this happening, Bitcoin took a fall to around $24,000, a 13% drop in the past 24 hours, bringing the total crypto market cap below $1T from the all-time-high of $3T.

After the collapse of Luna and its stable coin UST in May, various users have pointed out that Celsius is acting as an unregistered security, manipulating the token price and using its users as collateral, which prompted many users to withdraw their holdings from Celsius effectively creating a bank run.