Another domino is teetering in the cryptocurrency markets, and this time it’s also weighing on a Canadian pension fund. Celsius Network, a U.S. crypto-lending startup backed by the Caisse de dépôt et placement du Québec, said last night that it’s suspending withdrawals and transfers of customers’ funds. The move puts into question the safety of billions of dollars of consumer deposits held with Celsius, which promised yields as high as 17 per cent.
What it means: Celsius said the suspension will ensure it can meet its withdrawal obligations in the future. The move comes amid a punishing downturn for cryptocurrencies, making it unable to cover payments to customers who deposited funds into the platform. In addition to offering high-yield savings products, Celsius also lets customers take loans against their cryptocurrency holdings. Celsius didn’t respond to The Logic’s request for comment.