Is Celsius a bank or a crypto lender?

Founded in 2017 by Mr. Mashinsky, Celsius surged amid the crypto boom to become one of the biggest crypto lenders, with more than $12 billion in deposits. Customers, wooed by high interest rates, flooded in, while venture capitalists showered it with money. Contrasts with banks were at the center of Mr. Mashinsky's public persona. Mr.

Is Celsius Network's Alex Mashinsky a bank or a lender?

Celsius Network CEO Alex Mashinsky built his cryptocurrency lender into a giant on a pitch that it was less risky than a bank with better returns for customers. But investor documents show the lender carried far more risk than a traditional bank.

What is Celsius & how does it work?

Celsius was intended to operate somewhat like a traditional bank, albeit for crypto rather than fiat currency. It was once considered among the most successful parts of the decentralized finance ( DeFi) movement. A mere two months ago, Celsius claimed that it had 1.7 million users and assets under management (AUM) of $11.7 billion.

Why did Celsius freeze bitcoin?

Celsius posted a memo informing users that it had frozen their assets, sending the price of Bitcoin and other cryptos down along with it. The post read: “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” read the statement.