Members of the crypto community on Twitter have been baffled by the beleaguered Celsius network continuing to pay out weekly rewards despite halting withdrawals two weeks ago.
As previously reported, crypto lending platform Celsius halted withdrawals on June 13, citing extreme market conditions amid the current bear market. Reports soon followed that the firm was going through liquidity issues and headed for bankruptcy, potentially putting users’ funds at risk.
Why? @ Celsius Network Still giving out prizes if apparently they’re talking bankruptcy? Why not stop the rewards and set a lower withdrawal limit? Is it me or does it make too much sense?
– Crypto V[@crypto_kid2021] June 27, 2022
Figures such as Simon Dixon, Bitcoin (BTC) OG and CEO and co-founder of online investment platform BnkToTheFuture, tweeted His nervousness upon receiving crypto rewards worth approximately $4,000 for his 59,300 followers on June 27, but being unable to withdraw them:
“Email to one of my accounts. Can’t withdraw but @CelsiusNetwork is still paying. I’m curious if you think the rewards should still come? Ideas?”
Searching for “Celsius Still Paying” on Twitter, there are countless users questioning the lending platform, some such as ‘CryptoStylesUSA’ calling it “outrageous” that Celsius is maintaining its “crypto hostage”. Continues to pay out weekly rewards.
It’s honestly insulting, @ Celsius Network Keeping my crypto hostage while still paying weekly rewards. pic.twitter.com/Cst0iqNkDc
— CryptoSteve.eth (@CryptoStylesUSA) June 27, 2022
According to Celsius’ website – which is currently undergoing correction due to liquidity issues – the company is still advertising an annual percentage yield (APY) of up to 18.63% on crypto deposits, which many argue that it is unstable.
The SNX native token from decentralized finance (DeFi) platform Synthetix is the only asset offered by this promotion at the time of writing. The top tier stablecoins have listed APYs of around 9%, while Polkadot (DOT) and Polygon (MATIC) offer APYs of 11.87% and 9.52% each.
It appears that Celsius is still offering a 10% reward on the first deposit of up to $250,000, despite not allowing users to withdraw from the platform.
While it is still uncertain what the exact fate of the funds belonging to Celsius users will be, the firm reportedly enlisted advisors from a management consulting firm prior to the company’s bankruptcy. Celsius also hired lawyers to help with the company’s restructuring amid its financial crisis on June 14.
related: “Crypto is like the late 90s with the internet bubble,” says Hodl CEO Maurice Muro.
On June 27, rumors began to spread that Celsius CEO Alex Mashinsky allegedly attempted to leave the country via Morrison Airport in New Jersey, but was stopped by authorities. the story seems to be Occurred From crypto analyst Mike Alfred, however, the firm has reportedly denied the allegations.
