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Crypto Debacle at Celsius Rattles Market Already Shaken by Terra

  • Lender Celsius pauses withdrawals; business model questioned
  • Move follows Terra stablecoin implosion, raising DeFi concerns
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WATCH: Digital currencies slumped after crypto lender Celsius paused withdrawals. Bloomberg Intelligence’s Mike McGlone has the details.Source: Bloomberg
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A month after the implosion of the Terra stablecoin sent the crypto market reeling, another crisis is causing fresh angst across the entire digital-asset universe.

Celsius Network Ltd., one of the biggest lenders in crypto and a key player in the world of decentralized finance, said late Sunday that it was pausing withdrawals, swaps and transfers following weeks of speculation over its ability to make good on the outsize returns it offered on certain of its products, including yields as high as 17%. The move effectively halted a platform with registered entities across the globe and billions of dollars worth of digital coins under management, accelerating a selloff in the broader market that was already in progress on concern over prospects for tightening monetary policy ahead of a Federal Reserve meeting this week.