Crypto lender Celsius Network today returned to provide an update after its week-old announcement of halting withdrawals and transfers sent shockwaves across the market. The platform released a blog asking users for more time in order to get things back on track.
“We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time,” the firm said in a blog post.
“As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials. We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”
The recent carnage saw the world’s dominant coin bitcoin dropping below the $20,000 mark and the crypto market cap losing over 2 trillion in value over the weekend.
On top of that Terra’s crash had further aggravated the already fragile situation spurring mega sell-offs. Despite assurances and promotional activities, Celsius failed to quell panic investors and found itself on the edge of potential liquidations.
Seeing no other viable options, the lending and borrowing platform decided to pause its operation citing “extreme market conditions.”
Celsius’ lead Investor Offers A Helping Hand
Online investment platform BnkToTheFuture co-founder Simon Dixon has proposed a recovery plan similar to the one offered to Bitfinex after its Bitcoin hack in August 2016 which he claims was resolved within nine months.
Without detailing any specifics, Dixon stated that as a Celsius shareholder and lender, and due to the “short-term systemic impact on those that own Bitcoin,” he was “keen to support Celsius with a recovery plan.”
“It’s my position to offer solutions as we have the experience, licenses, and technology to do so,” he added.
Following the infamous breach, Bitfinex announced a recovery plan, which involved “promises to repay” in the form of BFX tokens to customers, representing the lost funds in the incident.
These tokens allowed users to trade on the open market or held later for future repayment, thus enabling customers to speculate on the firm’s recovery.
Later, BnkToTheFuture worked with Bitfinex to help users by converting the BFX tokens into equity in the company.