Crypto markets are not in their “pink state” lately. In fact, two of the major cryptocurrencies, Bitcoin and Ethereum have shrunk to about 1/3rd of their highest price. Due to these wild market conditions, many crypto-centric companies (especially exchanges) have paused withdrawals and transactions on their network.
Most industry experts believe that crypto exchanges are running out of liquidity. Due to this, they are halting their withdrawal and deposits.
Today, let’s talk about the top crypto exchanges that have paused transactions due to extreme market conditions.
One of the largest and most popular crypto lenders, Celsius Network had paused all withdrawals, swaps, and transfers earlier this month. This essentially locked about 1.7 million customers’ funds. Due to this, the company’s token CEL, saw a big hit, dropping about 92% of its value.
Moreover, as time goes on, more and more details come up about Celsius that don’t sound good for the platform. From its ongoing tussle with regulatory functionaries as well as an unusually high return on assets pledged, Celsius has had its fair share of controversies.
Probably the world’s biggest crypto exchange, Binance had temporarily paused Bitcoin withdrawals on its network. The company posted this on its Twitter account.
They stated that due to a stuck on-chain transaction, users cannot withdraw BTC on their network. The team resolved the issue 30 minutes later. However, the crypto exchange is well-aware of the scenario the crypto market is going through and keeps a close eye on it.
Physical futures crypto exchange CoinFLEX stated that they are pausing withdrawals last week. They went forward with this move due to “extreme market conditions”. Moreover, they also incorporated the uncertainty around a certain counterparty.
While they have not explicitly stated, the crypto exchange is pointing a finger toward Three Arrow Capital (3AC). 3AC has had a tough time lately, garnering big losses and defaulting repayments. Moreover, the crypto hedge fund is moving towards insolvency and restructuring.
Popular Indian crypto exchange, CoinDCX had restricted crypto deposits and withdrawals for many users last week. The company stated that due to compliance, risk, and monitoring requirements, they had to do so.
Moreover, the company is looking to enhance its compliance and risk framework to avoid compromised situations. Through this, they’ll provide a seamless fiat deposit and withdrawal on their exchange.