Twitter’s members of the crypto community have been left bewildered by the beleaguered Celsius Network despite pausing withdrawals two weeks ago, and are still continuing to pay weekly rewards.
Crypto lending platform Celsius reported previously that it paused withdrawals on June 13 after a report that stated extreme market conditions with the current bearish market. Soon followed was that the firm was undergoing liquidity issues and may be heading toward insolvency, potentially putting users’ funds at risk.
Simon Dixon, Bitcoin (BTC) OG and CEO and co-founder of online investment platform BnkToTheFuture, tweeted his confusement to his 59,300 followers on Monday over receiving nearly $4,000 worth of crypto rewards but being unable 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?”
There are countless users raising questions over the lending platform upon searching “Celsius still paying” on Twitter, with some such as CryptoStylesUSA calling it “insulting” that Celsius continues to pay weekly rewards while keeping their “crypto hostage.”
The company is still advertising annual percentage yields (APYs) of up to 18.63% on crypto deposits, which many have argued is unsustainable as to Celsius’ website, which is currently undergoing revamp due to the liquidity issues.
Despite currently not allowing users to withdraw from the platform, Celsius appears to be still offering 10% rewards on first deposits up to $250,000.
While it is still unclear what will happen to the fate of funds belonging to Celsius users will be, the firm reportedly onboarded advisers from a management consulting firm in advance of the company may be facing possible bankruptcy. Celsius also hired lawyers on June 14 to help restructure the company after its financial troubles.
Rumors on Monday circulated that Celsius CEO Alex Mashinksy allegedly attempted to leave the country via Morrison Airport in New Jersey but was stopped by authorities. However, the firm has reportedly denied the accusation that the story originated from crypto analyst Mike Alfred.
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