The struggling Celsius Network has baffled members of the crypto community on Twitter by continuing to pay weekly incentives despite stopping withdrawals two weeks ago.
Additionally, it appears that Celsius is still giving 10% bonuses on initial deposits up to $250,000 even if the platform does not yet permit withdrawals.
Celsius Network accused of hostaging funds
Celsius suspended withdrawals on June 13 due to the current bear market’s harsh market conditions. Reports quickly surfaced that the firm was experiencing liquidity troubles and may be on the verge of insolvency, potentially putting consumers’ funds at risk.
Figures like Simon Dixon, co-founder of online investing platform BnkToTheFuture, expressed disbelief on his 59,300 followers on Monday after earning over $4,000 in cryptocurrency awards but being unable to withdraw them.
“Email on one of my accounts. Can’t withdraw but @CelsiusNetwork is still paying out,” Dixon wrote. “I’m curious if you think the rewards should still be coming? Thoughts?”
Still struggling
The company is still promoting annual percentage yields (APYs) of up to 18.63% on cryptocurrency deposits, which many have said is unsustainable, according to Celsius’ website, which is now undergoing redesign owing to the liquidity concerns.
At the time of writing, this campaign solely offers Synthetix (SNX), the native token from the decentralized finance (DeFi) platform Synthetix. The APY for the top stablecoins on Celsius is around 9%, while Polkadot (DOT) and Polygon (MATIC) have offered APYs as high as 11.87% and 9.52%, respectively.
While the specific fate of funds belonging to Celsius users is unknown, the company reportedly hired consultants from a management firm in case everything goes down to zero. Celsius is also said to have employed lawyers to help reorganize the company in the midst of its financial difficulties.