Crypto lending firm Celsius Network has filed for bankruptcy
The crypto crash has claimed another corporate casualty: Celsius Network has filed for Chapter 11 bankruptcy. The crypto lending firm’s future has been in question since it abruptly halted all withdrawals and transfers exactly one month ago. He now hopes to continue operating on his remaining $167 million in cash while the bankruptcy courts restructure the business.
According Celsius Network Repository, the company has between $1 billion and $10 billion in assets, but owes a similar amount. The five largest claims range between $20 million and $80 million each. The company was valued at $3.25 billion last year, according Fortune, and was managing up to $24 billion in assets before this year’s sale. It would have dropped to around $12 billion before locking in withdrawals, but the bankruptcy filing suggests it has less now.
There have been… questions, to say the least, about Celsius’ business model and operations. We describe some of them here.
Celsius now says it halted withdrawals last month to avoid a bank rush“Without a pause, the acceleration of withdrawals would have allowed some customers – those who were the first to act – to be paid in full while leaving others to wait for Celsius to recoup the value of asset deployment activities. illiquid or longer term before receiving a clawback,” reads part of company press release today.
Crypto hedge fund Three Arrows was also forced to file for bankruptcy earlier this month.