Key facts
- Celsius Network paused all withdrawals four years ago today.
- The company cited extreme market conditions for the withdrawal halt.
- The pause locked up $12 billion in assets.
- Approximately 1.7 million users were affected by the withdrawal freeze.
- The CEL token fell 60% in value within an hour.
- Celsius Network filed for Chapter 11 bankruptcy the month after pausing withdrawals.
Four years ago today, the cryptocurrency lending platform Celsius Network announced it was pausing all withdrawals, citing "extreme market conditions." This decision immediately locked up $12 billion in customer assets and affected approximately 1.7 million users. The announcement sent shockwaves through the crypto market, with the platform's native token, CEL, plummeting 60% in value within a single hour. The severe liquidity crisis and subsequent market reaction ultimately led Celsius Network to file for Chapter 11 bankruptcy protection the following month. The events of that period highlighted the inherent risks and volatility within the rapidly evolving digital asset space, prompting increased scrutiny of crypto lending platforms and their risk management practices.