Celsius Network Accused of Bizarre Behavior
The crypto community is taken aback by the fact that Celsius Network continues to pay weekly rewards despite putting withdrawals to a halt on June 13.
Simon Dixon, Bitcoin (BTC) OG and CEO and co-founder of online investment platform BnkToTheFuture, said he was puzzled when the platform offered him nearly $4,000 worth of crypto rewards without allowing him to withdraw them:
Email on one of my accounts. Can’t withdraw but @CelsiusNetwork is still paying out. I’m curious if you think the rewards should still be coming? Thoughts?
Source: Simon Dixon Twitter
Another user tweeted:
This is honestly insulting, @CelsiusNetwork is still paying weekly rewards while holding my crypto hostage.
Meanwhile, a user called George Mastrokoukos replied to Simon Dixon’s question:
difficult to say if someone doesn't have the whole picture. If it's only a liquidity problem, and their core lendings still generate net yield, then it is correct that they keep paying rewards, even in this locked form.
On June 13, the Celsius Network cited extreme market fluctuations as the reason for its temporary withdrawal ban. Later on, reports emerged that that firm was experiencing liquidity issues and may soon declare insolvency, jeopardizing users’ funds. Celsius also hired lawyers on June 14 to help restructure the company.
Despite these problems, the company is still advertising annual percentage yields (APYs) of up to 18.63% on crypto deposits, including Synthetix (SNX), the native token from the decentralized finance (DeFi) platform Synthetix.
The top tier stablecoins on Celsius have roughly a 9% APY listed, while Polkadot (DOT) and Polygon (MATIC) offer APYs at 11.87% and 9.52% apiece.
Celsius also seems to be still advertising 10% rewards on first deposits up to $250,000.
It has also been claimed that Celsius CEO Alex Mashinksy attempted to flee the U.S. via Morrison Airport in New Jersey but was stopped by authorities. The firm denies the allegations.
