Celsius Falls 70% in 1 Hour After Halting Withdrawals

Controversial crypto lender Celsius suddenly paused all customer withdrawals, swaps, and transfers on Sunday “to put Celsius in a better position to honor, over time, its withdrawal obligations.”

Celsius’ CEL token quickly reacted, dropping 70% in one hour from a high of $0.49 earlier on Sunday down to $0.15.

Celsius’ sudden crash quickly drew comparisons to the recent Terra collapse as well as to infamous crypto Ponzi scheme Bitconnect by crypto investors on Twitter.

At the time of CEL’s dramatic drop, Bitcoin was down 9%, Ethereum down 9%, BNB down 9%, Cardano down 11%, Solana down 12%, and Dogecoin down 9%.

Celsius launched in 2017 and offers customers high yield for crypto deposits, which it lends out to other crypto firms.