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Celsius Lays Off A Quarter Of Its Workforce

Cryptocurrency lending platform, Celsius has laid off a quarter of its workforce, about 150 employees.

This is coming as the global crypto market goes through its worst meltdown, according to experts.

Recall that the platform had paused all withdrawals last month for its over 1.7 million customers, citing “extreme market conditions”.

Celsius had also paused its swap and transfer products in addition to notifying non-accredited investors that they could no longer transfer funds through the platform.

“We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.” it said while pausing withdrawal.

“We are focused and working as quickly as we can to stabilize liquidity and operations, to be positioned to share more information with the community,” Celsius wrote in a blog post.

“We are operating with the entire community and all clients in mind as we work through these challenging times,” it added.

Last week, a crypto investment platform, BnkToTheFuture even proposed a three-point recovery plan for Celsius.

The company had cited its resolve to help users affected by the insolvency of crypto lender Celsius Network.

“We believe that this allows us to call a shareholder meeting as part of our statutory shareholder rights that legally cannot be ignored by the Celsius board,” it said in the Thursday post.

“Celsius reached out & I am considering the best way to help. My best position is as an independent shareholder & depositor. All our proposed plans put depositors first & @BankToTheFuture has the experience to execute.

#DepositorsFirst Participate in recovery here: https://t.co/zGKtrU2jUG— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 30, 2022.

The proposal included a plan for the restructuring and relaunching of Celsius to allow depositors to benefit from “any recovery through financial engineering, the formation of a pool of the most influential holders of bitcoin (BTC) and have them “co-invest with the community” in a bid to raise significant amounts of capital for Celsius, and thirdly, the formation of an operational plan that allows a new entity and team to rebuild and make depositors whole.

Shortly after pausing withdrawal, Celsius’s rival, Nexo, in an open letter to the firm expressed interest in buying some of its assets.

Nexo had identified Celsius’ collateralized loan portfolio, brand assets, and the customer database without naming a price.

With this move, Celsius has joined a list of crypto firms laying off staff amid bearish market conditions.

Firms such as Coinbase, Banxa, ByBit, Huobi, etc have all cut staff numbers since the beginning of the year.

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