Members of the crypto community on Twitter have been left confused by the struggling Celsius Network continuing to pay weekly rewards despite pausing withdrawals two weeks ago. Some Twitter users have called Celsius’s act of continuing to pay weekly rewards despite pausing withdrawals “insulting”.
Formerly reported, crypto lending platform Celsius paused withdrawals on June 13 after alluding to extreme market conditions amid the current bear market. Another report soon followed that the firm was undergoing liquidity issues and may be heading toward insolvency, hypothetically putting users’ funds at risk.
Figures such as Simon Dixon, Bitcoin (BTC) OG and CEO and co-founder of online investment platform BnkToTheFuture, expressed his bewilderment in a tweet 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?”
Upon searching “Celsius still paying” on Twitter, there are countless users’ questions over the lending platform, with some such as CryptoStylesUSA calling it “insulting” that Celsius continues to pay weekly rewards while keeping their “crypto hostage.”
According to Celsius’ website — which is currently undergoing overhaul due to the liquidity issues — the company is still advertising annual percentage yields (APYs) of up to 18.63% on crypto deposits.
Celsius still offers 10% rewards on first deposits up to $250,000, though still not allowing users to withdraw from the platform.
While it is still uncertain what the exact fate of funds belonging to Celsius users will be, Celsius also hired lawyers on June 14 to help restructure the company amid its financial woes.
In between, on Monday, rumors started circulating 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 accusations.
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