How Crypto Lender Celsius Overheated

June 17, 2022 World Blockchain

If the collapse of LUNA was cryptocurrency’s Bear Stearns moment, Celsius Network threatens to become the industry’s Lehman Brothers: the failure that exacerbates a market crisis.
Celsius, which resembles a bank while touting itself as a democratized interest income and lending platform, is rumored to be insolvent following a freeze on withdrawals over the weekend. Founded in 2018, Celsius had more than $8 billion lent out to clients and $12 billion in assets under management by May of this year, according to the company.
In the wake of the withdrawal freeze, Coinbase, BlockFi and Crypto.com have announced job cuts, while insolvency rumors are also beginning to emerge from crypto hedge fund Three Arrows Capital.