A week after launching its withdrawal freeze, crypto lending platform Celsius Network warned the community of an increase in fake social media accounts claiming to be affiliated with the company.
In a blog post, the lending firm urged the community to be more cautious as there has been an increase in accounts “falsely claiming to be linked to Celcius.” In the same post, the firm announced that it would halt some of its communication channels, such as its Twitter space and ask-me-anything (AMA) sessions, to focus on its ongoing liquidity and operational issues.
Additionally, the firm has highlighted that it is working and communicating with regulators regarding withdrawal, swap and transfer halts, and is trying to find a solution. However, the firm did not mention any update on when its users can start withdrawing their funds.
Meanwhile, a Gamestop-style short squeeze movement for CEL on Twitter is trending in the business and finance category with the hashtag #CELhortSqueeze. Twitter users have been posting their CEL purchases to show their support for the project.
Bought some CEL for 0.40, sold for 20$. set on
Let’s destroy those little whales, shall we?— Zodiac (@Zodiacpl) June 19, 2022
Twitter user TheTwitOnline Express He hopes that CEL CEO Alex Mashinsky can see how the community is supporting the project, in the hopes that his team will work to deliver more value and utility to CEL.
related: Crypto lending platform Babel Finance reaches counterparty loan agreement
On Monday, Simon Dixon, co-founder of online investment platform BnkToTheFuture, proposed a solution to the Celsius debacle. According to Dixon, the approach Bitfinex used to deal with its infamous hack was working and urged Celsius to do something similar.
FTX Exchange CEO Sam Bankman-Fried denied rumors that major trading firm Alameda Research played a hand in the current Celsius crisis. On the other hand, Bankman-Fried notes that Alameda is working to prevent further losses within the crypto sector due to Celsius issues.