Cryptocurrency lender Celsius Network has announced that it has filed for bankruptcy.
Cryptographic lending has fallen in recent months following the fall in cryptocurrency prices and the collapse of the main TerraUSD token in May.
Celsius had stopped withdrawals and transfers between accounts last month, blaming extreme market conditions. State securities regulators in New Jersey, Texas and Washington had intervened to investigate the crypto lender’s decision.
Announcing that Celsius had sought the protection of Chapter 11, board members of the special committee said Wednesday: “Today’s presentation follows Celsius’ difficult but necessary decision last month to stop the withdrawals. , exchanges and transfers to your platform to stabilize your business platform and protect your customers.
“Without a pause, the acceleration of withdrawals would have allowed certain customers, who were the first to act, to be paid in full, while others were left behind to wait for Celsius to pick up value from asset deployment activities and · Liquids or long-term before receiving them.
The U.S. company said it had $ 167 million in cash to provide liquidity to support certain operations during the restructuring process. It listed its assets and liabilities estimated at between $ 1 billion and $ 10 billion on a consolidated basis.
Celsius did not ask for authority to allow the withdrawal of customers at this time, the company said in a press release, adding that it had filed court motions to allow it to continue its operations in the normal course.
Customer complaints would be dealt with through the Chapter 11 process, Celsius said.
With Reuters