Crypto Lender Celsius Files for Bankruptcy

Celsius said on Wednesday that it is entering the Chapter 11 process after the initial collapse.

Another Crypto Crash Corporate Victim

Cryptocurrency lender Celsius has just announced that it is filing for bankruptcy. The company has tumbled in the past few months following a huge crash in cryptocurrency prices.

In June, Celsius paused all withdrawals, transfers, and swaps, blaming extreme market conditions. Since then, state securities regulators have started investigating the decision.

The company’s board of directors said: “Today’s filing follows the difficult but necessary decision by Celsius last month to pause withdrawals, swaps, and transfers on its platform to stabilize its business and protect its customers.”

Celsius said it had $167 million in cash to provide liquidity to support some of its operations during the restructuring process. The crypto lender estimates its assets and liabilities to be between $1 billion and $10 billion on a consolidated basis.

The company also said that customer claims will now be addressed through the Chapter 11 process.

The move follows a proposal from Bnk To The Future to help save Celsius. However, Alex Mashinsky, the CEO of Celsius Network, did not want to expose his books to investors.

Earlier this month, Crypto Brokerage Voyager Digital also filed for bankruptcy too, as the 2022 crypto winter continues.