Cryptocurrency lending company Celsius (CEL) faced some problems after some of its customers started complaining about their inability to withdraw their funds. The price of Celsius’s native token, CEL, has dropped nearly 35 percent in the past 24 hours, according to data from CoinMarketCap. Celsius CEO Alex Mashinsky also stated that he is aware of the extreme market volatility affecting projects such as Terra (LUNA) and stablecoin TerraUSD (UST).
Mashinsky: All funds are secure and operating
Alex Mashinsky, CEO of Celsius Network, to address customer concerns regarding withdrawal issues, claiming that their funds are safe. He made some statements on the media platform Twitter. Mashinsky shared a tweet stating that all funds are safe and that the platform is continuing its operations.
All funds are safe. We continue to be open for business as usual
As part of our responsibility to serve our community, @CelsiusNetwork implemented and abides by robust risk management frameworks to ensure the safety and security of assets on our platform.
— Alex Mashinsky (@Mashinsky) May 11, 2022
Kriptokoin.com, the leading cryptocurrency Bitcoin (BTC) plunged to 52-week lows today. The market crash resulted from the collapse of Terra’s LUNA governance token and UST stablecoin. The collapse of one of the largest cryptocurrency projects has had a ripple effect on the broader cryptocurrency market. However, Mashinsky claims Celsius has weathered extreme market volatility without any significant losses. Mashinsky, CEO of Celsius company, explained that he practices risk management aimed at protecting clients’ assets and said:
All funds are safe. We remain open as usual. As part of our responsibility to serve our community, CelsiusNetwork practices and adheres to robust risk management to ensure the safety and security of assets on our platform. Despite the extreme market volatility, Celsius did not suffer any significant losses and all funds are safe.
Celsius will not be involved in rescue for LUNA
on Wednesday, Celsius along with Jane Street Capital and Jump Trading reported that Terra is involved in a potential rescue operation Rumors began to appear. However, Mashinsky categorically denied that they would participate in this rescue operation.
Last month Celsius updated its “Risk Disclosures” message to warn investors that CEL faces significant regulatory risks. Celsius also banned non-accredited US investors from earning rewards on the Earn platform. The leading cryptocurrency lending firm is facing serious scrutiny from US Regulators in Texas, New Jersey and Alabama, who allege that the company violates securities laws.
