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Celsius Reportedly Lays Off 150 Employees, Customers Still Can't Withdraw Their Crypto

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coincodex.com 04 July 2022 10:14, UTC
  
Reading time: ~2 m

Key highlights:

  • Celsius has reportedly laid off around 150 employees
  • The crypto lender suspended withdrawals on June 13, and customers still can't access their funds
  • The FTX cryptocurrency exchange reportedly walked away from discussions with Celsius after seeing the company's finances

Troubled crypto lender Celsius lays off around 150 employees

Troubled cryptocurrency lending firm Celsius has reportedly laid off around 150 employees, according to a report from Calcalist. Celsius has around 650 employees listed on LinkedIn, which would suggest that about 23% of the company’s employees lost their jobs.

Celsisus joins a long list of cryptocurrency and blockchain industry companies that have announced layoffs during this crypto bear market. The likes of Coinbase, Gemini, Bybit and Huobi have all laid off employees in the last month, but all the mentioned businesses remain fully functional and are providing their services as per usual. 

The situation is very different when it comes to Celsius, however. Celsius suspended withdrawals from its platform on June 13, citing “extreme market conditions”. Three weeks later, the company’s customers still can’t access their funds, and Celsius has been vague about the steps it is taking to remedy the situation. The company’s latest official update regarding the withdrawal freeze said the following:

“We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues.”

According to a The Block report from June 30, the FTX cryptocurrency exchange was interested in making a deal to provide financing or acquire Celsius, but walked away from the discussions after evaluating the company’s finances. 

FTX has recently signed a deal with BlockFi, another crypto lender that’s found itself in hot water. The deal provides a $400 million revolving credit facility to BlockFi and gives FTX the option to acquire BlockFi for a price of up to $240 million. 

Several other cryptocurrency lenders are also struggling. Voyager, a crypto lender that’s listed on the Toronto Stock Exchange, suspended withdrawals, trading, deposits and loyalty rewards on July 1. Voyager is owed more than $650 million by Three Arrows Capital, a crypto hedge fund that recently filed for Chapter 15 bankruptcy.


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